David Fox claims that he was constantly bullied at school after the album became a hit, which he says led to his lack of qualifications.
Explaining how he got on to the cover of the album, he told The Sun: "My older brother Duane had just passed away from muscular dystrophy, and my cousin Saul Fletcher came to the funeral. I didn't know him very well because he lived in London and I was a lot younger than him.
"He was a professional photographer and came with all his camera equipment. He got me outside and asked me to pull different faces and poses. We all thought it was for his personal use."
After the album was released, his school life allegedly was turned upside down when other children spotted him.
Fox recalled: "That picture ruined my life. When I was in school I used to be well known and have loads of mates. We used to play football together and I was really happy.
"But when the album came out, the friends I did have began to pick on me. I think they might have been jealous. Or they saw a boy pulling a silly face and didn't want to hang out with him anymore because he looks weird.
"Because I lived in such a tiny village, everyone was friends with each other. I think I could have got away with it if I lived in a big city."
[Placebo's Brian Molko on stage in Liverpool in April 2012]
Fox later attended four different schools due to the bullying, and then went to a boarding school for children with behavioural needs. He eventually dropped out of his GCSEs and is currently unemployed, aged 27.
"Because I was bullied out of my first school, my reading, writing and maths wasn't top notch. If I'd taken my exams I would have failed them all. When I see the picture now, I hate it. It has too many bad memories. If I could walk into every shop and bin it, I would," he said.
"If I didn't have all these problems at school I might have taken my GCSEs, got a better job and even achieved my ambition of owning a nightclub. Now I'm out of work and would take any job I can find."
On why he is suing Placebo and the album's photographer, Fox stated: "I'm using all the spare money I have. I've found a solicitor and have started making calls. There are posters and even T-shirts with my face on and I had no idea.
"Apparently Placebo's management tried to contact me in 2006 to get some photos of how I am now, but they never found me. I was still living at the same address where my cousin had taken the photo, so they didn't look very hard. My mum never signed anything giving her permission, and never received any documents or phone calls asking for her consent. She's as angry as me.
"I'm angry with my cousin for doing what he's done. I haven't seen him since he took that photo, and I've no idea how much he made from it. And I'm annoyed with the band's managers and record labels because they should have sent through documentation for consent.
"It's not about the money for me. It's about the principle and what it's done to me. It hasn't had an impact on them. They haven't had to live with the consequences."
Placebo stated last year that they are planning to record a new album in 2012.
Watch the video for Placebo's 'Nancy Boy' below: