2:30 PM PT -- Diddy's attorney Erica Wolff tells TMZ ... "Mr. Combs is shocked and disappointed by this lawsuit. In an attempt to rewrite history, Dawn Richard has now manufactured a series of false claims all in the hopes of trying to get a pay day -- conveniently timed to coincide with her album release and press tour."
She adds, "If Ms. Richard had such a negative experience with Making the Band and Danity Kane, she would not have chosen to continue working directly with Mr. Combs for Dirty Money, nor would she have returned for the Making the Band reboot in 2020 or agreed to be featured on 'The Love Album' last year. It’s unfortunate that Ms. Richard has cast their 20-year friendship aside to try and get money from him, but Mr. Combs is confidently standing on truth and looks forward to proving that in court."
Diddy is facing yet another lawsuit from a new accuser, a former bandmate who claims the music mogul belittled, terrorized and sexually abused her while she also witnessed him savagely beat his ex, Cassie.
According to the suit, obtained by TMZ ... Dawn Richard says she got caught in Diddy's web as a participant on his 2004 MTV show "Making The Band," with the Bad Boy CEO manipulating her by promising to advance her singing career if she relented to his alleged twisted demands.
The former Danity Kane member said during on-set auditions, Diddy called female contestants "fat," "ugly," "bitches" and "hoes." She said Diddy had particular disdain for her because she was young and excited to work with such a famous person.