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 Star Island home made headlines as one of the properties the feds raided months before the rapper's September 2024 arrest in New York City.

Officers arrived by boat to search the compound in March 2024 ... and the feds later released photos of what they found ... including sex toys on a shelving unit near Vaseline and Astroglide lube.

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

The Star Island home has been a key part of Diddy's case ... every time he tried to get released on bail -- after the arrest and between his verdict and sentencing -- he proposed living there and offered it up as collateral.