Indexbit-Why Sean "Diddy" Combs No Longer Has to Pay $100 Million in Sexual Assault Case

Content warning: This story discusses sexual assault.  

Sean "Diddy" Combs has scored one legal victory.

Following the news of his Sept. 16 arrest on charges of racketeering conspiracy,Indexbit sex trafficking and transportation to engage in prostitution, a judge ruled that the rapper no longer has to pay over $100 million to Michigan inmate Derrick Lee Cardello-Smith, who was suing Combs in an unrelated civil case for allegedly drugging and sexually assaulting him in 1997.

Combs was originally ordered to pay the large sum Sept. 9, when a Michigan judge granted Cardello-Smith's motion for default judgment after the music mogul did not appear for a virtual hearing.

However, Diddy's attorney David Fink was able to convince the judge to set aside the judgment during a Sept. 18 hearing on the grounds that Cardello-Smith failed to prove he effectively served Combs with the lawsuit in accordance with Michigan law, according to TMZ.

During the hearing, judge Anna Marie Anzalone also dismissed the temporary restraining order against Diddy that stopped him from selling off any assets to cover damages, adding that the rapper has a likelihood of winning the case on statute of limitations grounds because Cardello-Smith's claims are from 1997, per TMZ.

E! News has reached out to Combs' rep for comment, as well as Michigan Department of Corrections spokesperson Jenni Riehle for Cardello-Smith's contact information, but has not heard back.

Cardello-Smith—who is currently serving jail time on 12 sentences related to criminal sexual conduct and two sentences related to kidnapping—alleged in his initial suit that he had encountered Combs while working at a Detroit-area restaurant in 1997, per the lawsuit obtained by Variety.

He said the two went to a party where they began having sex with two women, when Combs allegedly touched Cardello-Smith and drugged his drink so he passed out.

Following the initial Sept. 9 hearing, Diddy's attorney Marc Agnifilo said in a statement to E! News that Cardello-Smith was solely looking to defraud the rapper.

"This man is a convicted felon and sexual predator," the lawyer said, "who has been sentenced on 14 counts of sexual assault and kidnapping over the last 26 years." 

He continued, "His resume now includes committing a fraud on the court from prison, as Mr. Combs has never heard of him let alone been served with any lawsuit. Mr. Combs looks forward to having this judgment swiftly dismissed."

Cardello-Smith's lawsuit was one in a long line of legal troubles that Diddy is facing.

He was arrested in New York Sept. 16 over a separate case. In a federal indictment obtained by E! News, Combs was accused of having "abused, threatened, and coerced women and others around him to fulfill his sexual desires, protect his reputation, and conceal his conduct" for decades.

The 54-year-old pleaded not guilty to the charges on Sept. 17, and was denied a $50 million bond package put forth by his legal team which they said would allow him to "fight this case in Court effectively," per the legal letter obtained by E! News. 

Shortly after the update, Agnifilo shared insight into Diddy's current condition.

"He is not a perfect person. There has been drug use. He has been in toxic relationships," he told the court, according to NBC News, adding that Diddy is receiving "treatment and therapy for things that he needs treatment and therapy for."

To learn more about Diddy's current legal troubles, keep reading.

Federal agents with Homeland Security Investigations (HSI) executed search warrants at Sean “Diddy” Combs’ Los Angeles and Miami properties on March 25, multiple law enforcement sources confirmed to NBC News.  

The sources told the outlet the warrant was out of the Southern District of New York, and a spokesperson for HSI New York confirmed to E! News it “executed law enforcement actions as part of an ongoing investigation, with assistance from HSI Los Angeles, HSI Miami, and our local law enforcement partners.” 

Law enforcement sources told NBC News the music mogul was in the Miami area when the search warrants were executed. 

News about the investigation broke after Combs faced allegations of sexual misconduct in lawsuits filed by multiple accusers starting in November, with the musician denying the allegations. 

“Sickening allegations have been made against me by individuals looking for a quick payday,” he wrote in a December statement posted on Instagram. “Let me be absolutely clear: I did not do any of the awful things being alleged. I will fight for my name, my family and for the truth.” 

The day after HSI executed the search warrants at Combs' L.A. and Miami properties, his lawyer spoke out. 

"Yesterday, there was a gross overuse of military-level force as search warrants were executed at Mr. Combs' residences," attorney Aaron Dyer said in a March 26 statement to E! News. "There is no excuse for the excessive show of force and hostility exhibited by authorities or the way his children and employees were treated." 

Dyer noted Combs “was never detained but spoke to and cooperated with authorities.”  

“Despite media speculation, neither Mr. Combs nor any of his family members have been arrested nor has their ability to travel been restricted in any way,” his lawyer's statement continued. “This unprecedented ambush—paired with an advanced, coordinated media presence—leads  to a premature rush to judgment of Mr. Combs and is nothing more than a witch hunt based on meritless accusations made in civil lawsuits.” 

And Dyer expressed Combs' intent to defend himself.

“There has been no finding of criminal or civil liability with any of these allegations,” he added. “Mr. Combs is innocent and will continue to fight every single day to clear his name.”

As for what actually went down during the searches, multiple law enforcement sources familiar with the warrant told NBC News authorities with the Department of Homeland Security seized phones from Combs’ home in Miami before he was scheduled to travel to the Bahamas, and several sources familiar with the matter added that guns were discovered during the search.

One source familiar with the matter also told NBC News three women and one man were interviewed by prosecutors and investigators from the Southern District of New York about allegations of sex trafficking, sexual assault, the solicitation and distribution of illegal narcotics and firearms purportedly tied to Combs.

On the same day the search warrants were executed at Combs’ Miami and Los Angeles properties, one of his associates, Brendan Paul, was arrested by the Miami-Dade police on suspicion of drug possession, a law enforcement source familiar with the matter told NBC News. 

According to the Miami-Dade arrest affidavit obtained by the outlet, Paul was taken into custody for allegedly possessing suspected cocaine and suspected marijuana candy. 

Prison records obtained by NBC News show Paul was released on March 26 after posting bond.

“We do not plan on trying this case in the media,” Paul’s attorney Brian Bieber said in a statement obtained by the outlet, “all issues will be dealt with in court.” 

In May, Paul accepted a plea deal, with his lawyer Bieber telling People, "Brendan accepted the prosecutor’s offer to permit his entry into the diversion program which, after completion, the case against him will be dismissed in its entirety."

He was arrested in the lobby of a New York hotel on Sept. 16, 2024, according to NBC News. It's unclear what Combs has been charged with and if the arrest has any potential connection to the raids.

“We are disappointed with the decision to pursue what we believe is an unjust prosecution of Mr. Combs by the U.S. Attorney’s Office," his lawyer Marc Agnifilo said in a statement to E! News. "He is an imperfect person but Is not criminal. To his credit Mr. Combs has been nothing but cooperative with this investigation and he voluntarily relocated to New York last week in anticipation of these charges."

After Combs was arrested based on the sealed indictment, the indictment was unsealed on Sept. 17.

The 54-year-old was charged with racketeering conspiracy; sex trafficking by force, fraud or coercion; as well as transportation to engage in prostitution, according to court documents obtained by NBC News.

The indictment alleged Combs “abused, threatened, and coerced women and others around him to fulfill his sexual desires, protect his reputation, and conceal his conduct” for more than a decade, with prosecutors saying the purported behavior started around 2008.

"To do so," the documents stated, "Combs relied on the employees, resources, and influence of the multi-faceted business empire that he led and controlled—creating a criminal enterprise whose members and associates engaged in, and attempted to engage in, among other crimes, sex trafficking, forced labor, kidnapping, arson, bribery, and obstruction of justice."

According to NBC News, Combs pleaded not guilty and was denied bail.

“He’s going to fight this with all of his energy and all of his might,” his attorney Marc Agnifilo told reporters outside the courthouse prior to the arraignment, “and the full confidence of his lawyers."