EXCLUSIVE: Diddy Eyes Possible Massive Payout As “Banfield” Producers Consider Settlement

Diddy may collect a substantial payout as Nexstar Media considers settlement talks after failing to eliminate his entire $100 million defamation lawsuit.

A new filing exclusively obtained by AllHipHop shows both sides are weighing mediation or a settlement conference before a federal judge.

The possible settlement follows a dispute over allegations broadcast on Banfield, a NewsNation television program owned by Nexstar.

Diddy sued Nexstar, attorney Ariel Mitchell and her client Courtney Burgess after NewsNation aired claims involving supposed sex tapes, minors and drug-laced baby oil.

During a 2024 Banfield appearance, Burgess claimed a friend gave him 11 flash drives that once belonged to Diddy’s late partner Kim Porter.

Burgess said the drives contained eight videos involving celebrities at Diddy’s parties, including several people who allegedly appeared to be minors.

He claimed everyone shown appeared intoxicated and characterized them as sexual assault victims, according to Diddy’s amended complaint.

Burgess said six men and two women appeared in the videos connected to Diddy’s alleged parties. Mitchell supported Burgess during the interview and later told a reporter that his accusations were backed by “actual factual footage.”

Diddy insists the recordings never existed, Burgess never knew Porter, and federal investigators never received the alleged videos described during the broadcasts.

Porter’s children had already publicly denied that their mother wrote a memoir or entrusted Burgess with private materials before NewsNation aired the interview.

Another Banfield segment produced the only defamation claim Diddy can continue pursuing against Nexstar following a September 4 ruling.

During the October 7, 2024, broadcast, Mitchell said her research showed baby oil could serve as a “conduit” for drugs “mixed into the oil.” She suggested Diddy covered one of her clients with the drug-infused mixture to incapacitate her by “lowering her defenses.”

Diddy claims Mitchell conducted no such research and that no scientific evidence supports delivering incapacitating drugs through baby oil applied to someone’s skin.

U.S. District Judge John Cronan ruled the allegation appeared questionable enough that NewsNation may have possessed clear reasons to doubt it.

The judge found Diddy presented enough facts to argue Nexstar recklessly disregarded the truth when the network broadcast Mitchell’s accusation.

“In the view of the Court, it is plausible that anyone who heard such a claim would at the very least entertain serious doubts as to its accuracy,” Cronan wrote.

The baby oil claim survived because the alleged drug-delivery method provided an additional reason for NewsNation to question Mitchell’s accuracy.

Cronan dismissed Diddy’s other claims against Nexstar involving the purported celebrity recordings, hidden cameras and a supposedly corroborating police report.

The decision does not establish that Mitchell lied or that Nexstar committed defamation; it only permits Diddy to continue pursuing that narrow claim.

AllHipHop previously reported that Mitchell must defend broader accusations involving recordings, extortion, the police report and alleged misconduct affecting hundreds of people.

Burgess never answered the lawsuit after Diddy received permission to serve him through email, text messages, certified mail and newspaper advertisements.

The court clerk entered a certificate of default against Burgess on April 30, 2026, after he missed his response deadline.

That default prevents Burgess from defending himself unless Cronan reverses it, although Diddy has not received a $100 million judgment against him.

With the Nexstar claim still alive, the September 10 filing reveals that both sides are now considering a possible negotiated resolution.

Diddy’s lawyers have not approved mediation because they have been unable to speak with him inside federal prison.

The parties asked Cronan for two weeks to decide whether they want mediation or a settlement conference led by Magistrate Judge Sarah Cave.

The request does not mean Nexstar has offered money, admitted fault or agreed to pay Diddy any portion of his requested damages.

However, it confirms the company will consider a process to resolve the lawsuit without proceeding to a federal trial.

A settlement could protect Nexstar from further evidence exchanges, depositions and testimony examining what NewsNation knew before broadcasting Mitchell’s allegation.

It could also produce a major payment for Diddy, although $100 million remains his requested minimum rather than an established case value.

The parties expect to update Cronan about possible settlement proceedings by September 24 while their dispute over Nexstar’s evidence requests remains unresolved.

Diddy is serving his 50-month sentence at FCI Fort Dix in New Jersey after two Mann Act convictions, with 510 days remaining until February 5, 2028.