Embattled entertainment mogul Sean "Diddy" Combs is facing another lawsuit – this one in a six-figure business dispute that alleges Combs left a New Orleans design firm on the hook for $100,000 in material costs after postponing the event it was meant for.
Raven PMG, which builds temporary structures out of steel, neon lights and other materials for events ranging from concerts to pop-up venues and art installations, accepted a contract to build a "red translucent cube" for an event Combs was supposed to hold.
On Aug. 31, 2023, another company working with Combs, Phantom Labs, approached Raven to work on the structure, according to the federal civil complaint filed last week in the Southern District of New York.
A few days later, Phantom, also named in the lawsuit, asked for changes to the design, which tacked on another $20,000 in production costs, which another co-defendant named Mark Lupton allegedly promised would be paid by Sept. 8.
The lawsuit alleges that Phantom and Lupton misrepresented their funding and business relationship with Combs while negotiating the project with Raven.
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Additionally, Combs, the billionaire founder of Bad Boy Records and the Sean John clothing line, among other ventures, is accused of interfering with the contract by allegedly failing to pay Phantom, which then stuck Raven with the bill.
Representatives for Combs did not immediately respond to FOX Business' request for comment.
On Sept. 7, Phantom told Raven to stop production because the music event had been postponed.
Specifics about the red cube were not immediately available due to a confidentiality agreement, a lawyer for Raven told FOX Business.
According to court filings, under the terms of the contract, Raven was due to be reimbursed for its costs, according to the lawsuit.
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"The current case is the first of many against Diddy and Phantom, as our investigation is revealing significant damages incurred by multiple parties, suggesting a systemic issue within their operations," said Thomas Eisweirth, who is representing Raven.
The design firm sent Phantom an invoice for $96,732 but allegedly never received payment.
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"In November 2023, [Phantom's] CEO Gabriel Fraboni contacted Raven to apologize for lack of payment and proposed a biweekly payment plan of $18,000.00 to resolve the issue," the complaint reads. "However, [Phantom] failed to make any payments under the plan, leading Raven to engage attorneys to pursue the debt."
The lawsuit is seeking reimbursement for the material costs and another $200,000 in damages, plus interest, attorney fees and other legal expenses.
Combs' recent troubles began in November when his ex-girlfriend, Casandra Ventura, better known as the R&B singer Cassie, sued him, alleging rape and other abuse. They settled a day later without the billionaire Combs admitting wrongdoing.
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At least four other people have subsequently sued him alleging similar abuse, and federal agents from Homeland Security Investigations raided his mansions in Los Angeles and Miami Beach in March.
He has not been arrested or charged with a crime in connection with the raids.
