The Smashing Pumpkins are suing Virgin Records, saying the record label has illegally used their name and music in promotional deals that hurt the band’s credibility with fans.

In a breach-of-contract lawsuit filed in Los Angeles Superior Court Monday, the rockers said they have “worked hard for over two decades to accumulate a considerable amount of goodwill in the eyes of the public,” and that Virgin’s use of the band in a “Pepsi Stuff” promotion with Amazon.com and Pepsi Co. threatens ...