Diddy's Company Sued For Allegedly Backing Out of Star Island Home Sale

Diddy's company is being sued after allegedly failing to close a multi-million dollar deal to sell his home on Star Island near Miami.

A man named John Franklin is suing 1 West Star Island LLC -- the corporation which technically owns Diddy's mansion in the affluent neighborhood ... claiming he entered into an agreement back in March to buy the home for $55 million.

According to the lawsuit, obtained by TMZ, Franklin says the closing date was set for May 12 ... but when it came around, he claims the company was "not ready or able to close" the deal even though he was.

Specifically, Franklin claims 1 West Star Island wasn't able to provide a clear title by the closing date by failing to provide some paperwork about a couple mortgages on the property.

He notes there's a mediation clause baked into the contract ... and he says he will go to mediation to work out the deal -- but he's filing the lawsuit out of an abundance of caution to protect his interest in the property.

Franklin's asking a judge to enforce the contract and force the sale.

Diddy's currently serving time at Fort Dix -- a federal prison in New Jersey. He's expected to be released in February 2028.

A rep for Diddy tells TMZ ... "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 Northern Trust Loan and the prior permit related matters were all pre ownership of 1 West Star Island, LLC and cleared up as an administrative matter."