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Diddy Hit With $200k Federal Lawsuit Over Scrapped Art Project as Legal Troubles Mount

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Diddy is facing multiple lawsuits and a federal investigation.

Apr. 9 2024, Published 1:36 p.m. ET

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Sean "Diddy" Combs can add another lawsuit to his long list of legal battles. He's being sued, along with Phantom Labs, Inc. (PHNTM) and a tour manager named Matthew Lupton, by an event design group for six figures over a scrapped art project, according to the legal documents obtained by RadarOnline.com.

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Raven Production Management Group, LLC filed the lawsuit in New York on Tuesday, claiming PHNTM and Lupton "misrepresented their contractual relationship with Diddy and their financial arrangements" when they hired Raven in August 2023 to construct and install a red translucent cube for a project related to the embattled Bad Boys founder.

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He's being sued by an event design group, along with Phantom Labs, Inc. (PHNTM) and a tour manager named Matthew Lupton, for six figures over a scrapped art project.

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"On August 31, PHNTM, by and through Lupton, stated that it received a signed contract from Diddy and would receive funds the next day," the lawsuit stated, adding that "based on PHNTM and Lupton’s representations, Raven began fabricating the cube based on the modified specifications."

On September 7, PHNTM allegedly instructed Raven "to stop work because Diddy postponed the project to a later unknown date."

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However, when it came time for PHNTM to cough up payment, Raven claimed "it never did."

"Despite assurances from PHNTM that it would pay Raven for costs incurred once it received funds from Diddy, it never did. On September 8, Raven sent PHNTM an invoice for $96,732.00 for its material costs but received no payment," the suit stated.

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Diddy has denied the allegations against him.

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In November 2023, Raven claimed PHNTM’s CEO Gabriel Fraboni contacted the company "to apologize for lack of payment and proposed a biweekly payment plan of $18,000.00 to resolve the issue," but "PHNTM failed to make any payments under the plan."

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"Raven performed its obligations under the contract by ordering materials and fabricating the cube. PHNTM breached the contract by failing to pay the agreed amount or to reimburse Raven for its costs of materials. As a result of PHNTM’s breach, Raven suffered damages of no less than $200,000, exclusive of fees and interest," the company charged in the legal documents.

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Two of Diddy's properties were raided by agents last month in connection to the sex trafficking probe.

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Raven is demanding a jury trial and to be awarded damages "no less than $200,000 for breach of contract, no less than $96,732.00 for fraudulent inducement, and additional damages for tortious interference with contract and business relations, deceptive trade practices, unjust enrichment, and quantum meruit."

Raven also wants the defendants to pay for the costs, expenses, and attorney fees related to the legal battle.

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While Diddy is named in the lawsuit, it's likely the least of his worries.

As RadarOnline.com reported, the rapper is at the center of a federal investigation into allegations of sex trafficking. Diddy has been slapped with several lawsuits involving sex crime accusations, including a since-settled one by his ex, Casandra "Cassie" Ventura.

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Five production companies are scrambling to produce projects related to Diddy's downfall.

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He has denied the allegations against him. The probe came to a head late last month when federal agents raided two of his properties in Los Angeles and Miami. Two of Diddy's children, Justin and King, were handcuffed and detained but not arrested during the raids, which the mogul's attorney called "a witch hunt."

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