Sunday, June 21, 2026

Diddy’s Company Hit With Lawsuit Over Alleged Withdrawal From $55 Million Star Island Property Deal

A $55 million real estate deal involving a Miami mansion connected to Sean “Diddy” Combs has become the subject of a legal battle.

John Franklin, a buyer based in South Carolina, filed a lawsuit last month against 1 West Star Island LLC, the company that owns one of Combs’ luxury Star Island properties. Franklin claims the company failed to honor a signed purchase agreement after allegedly missing the scheduled closing date.

Combs owns two neighboring properties on Miami’s exclusive Star Island: 1 Star Island Drive and 2 Star Island Drive. The dispute centers solely on 1 Star Island Drive, which Diddy purchased in 2021 for $35 million. Court documents from 2024 valued the neighboring property at approximately $48 million.

According to Franklin’s lawsuit, he signed a contract to purchase 1 Star Island Drive in March 2026, with the transaction set to close on May 12. He alleges that when the closing date arrived, 1 West Star Island LLC was unable to finalize the deal despite him being ready to proceed.

At the heart of the dispute is Franklin’s claim that the company could not provide clear title to the property because it allegedly failed to produce documentation related to two mortgages tied to the home.

Franklin says the lawsuit was filed “out of an abundance of caution” to protect his interest in the property. He is seeking specific performance, meaning he wants a court order requiring the seller to complete the sale.

However, representatives for the company strongly dispute those allegations. In a statement to TMZ, a spokesperson said, “1 West Star Island, LLC was ready and on standby to close the transaction on the date agreed. Buyer, Mr. John Franklin, failed to perform; therefore, a notice of default was issued to him on 5/11/2026 with a follow-up on 5/13/2026.”

The representative further argued that concerns regarding previous loans and permit issues had already been resolved and maintained that any failure to complete the transaction was the responsibility of Franklin, not the company. They also described the lawsuit as frivolous and noted that it was filed on the same day Franklin was allegedly required to transfer a $2.5 million payment.

The property itself has attracted significant attention over the years. Diddy acquired the home in 2021 for $35 million, while he purchased the neighboring Star Island estate in 2003. That second property became the focus of a federal raid in March 2024 as part of a broader investigation, with images from the search later surfacing during Combs’ Manhattan trial.

Combs was convicted in July 2025 on two counts of transportation to engage in prostitution and received a 50-month prison sentence in October of that year. He is currently serving his sentence at FCI Fort Dix in New Jersey while participating in a drug rehabilitation program. His projected release date is February 23, 2028, though his conviction and sentence remain under appeal.

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