The 54-year-old rapper failed to attend a virtual hearing on Monday in connection to Derrick Lee Cardello-Smith's sexual assault lawsuit against him and so Judge Anna Marie Anzalone awarded the default judgment in Lenawee County Circuit Court, but the I'll Be Missing You hit maker's legal team have challenged the ruling.
According to court documents obtained by People magazine, Diddy's lawyers argue his accuser - a "convicted felon who is serving time in prison for kidnapping and sexual assault" - has frequently filed frivolous claims in the past and his allegation of being sexually assaulted in 1997 is "objectively unbelievable".
And they insist many of Derrick's claims, such as he invested $US150,000 for 49 per cent of Diddy's net worth, are fabricated, implausible, and full of "inconsistencies and fantastical claims".
"This man is a convicted felon and sexual predator, who has been sentenced on 14 counts of sexual assault and kidnapping over the last 26 years, Marc Agnifilo, a lawyer for the Bad Boy Records founder, said in a statement.
"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."
The lawyers also argue Diddy was not properly served in the lawsuit, so the judgement is invalid.
They claim their famous client was unaware of the suit until the news about the default judgement was reported in the media, and insist any delay in his response was unintentional as he quickly filed the motion to vacate once he was made aware.
The motion branded the $US100 million award "extraordinary and incompatible with any possible measure of actual damages even if every (facially implausible) allegation in the Complaint were true", as Combs "did not receive notice of the lawsuit" until Monday.
And they noted even if the claims were true, the statute of limitations ended in 2007 so they should have been dismissed.
Furthermore, Diddy filed a motion to dissolve a temporary restraining order and/or preliminary injunction, which had been granted in August.
In his lawsuit, the accuser alleged he had met the Finna Get Loose hit maker - who is facing a string of sexual assault and trafficking cases - in 1997 during an afterparty at a Detroit Holiday Inn.
He claimed they got a private room with two women and Diddy groped his buttocks while Derrick was having sex with one of their female companions.
He also accused the rapper of drugging and sexually assaulting him.
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