In Court Testimony Today Cassie Revealed Diddy Paid Her A $20 Million Settlement

In November 2023, singer and model Cassie shocked the music industry by filing a civil lawsuit against her former partner, Sean "Diddy" Combs. The complaint, which accused Diddy of rape, sex trafficking, and years of brutal physical and emotional abuse, was explosive—yet just as quickly as it surfaced, it vanished. Within 24 hours of filing, Cassie's lawsuit was quietly settled behind closed doors.

Though the terms of the settlement were kept confidential, unconfirmed reports swirled suggesting that Diddy had paid a massive sum to make the case disappear. But until now, the exact amount remained a mystery.

Until now.

(Photo by Kevin Mazur/WireImage)

Diddy is currently on trial in Manhattan federal court, facing five felony charges: racketeering conspiracy, two counts of sex trafficking by force, fraud, or coercion, and two counts of transportation to engage in prostitution. Prosecutors allege that Combs orchestrated a criminal enterprise involving the coercion and exploitation of women, including orchestrated drug-fueled sex events known as "freak-offs."

Today marks the third day of the trial and the conclusion of Cassie Ventura's second day of testimony. Cassie provided detailed accounts of alleged abuse and coercion during their relationship, including being forced into sexual acts under threat of violence and blackmail.

During her testimony, Cassie was asked about a settlement she previously received from Diddy. In November 2023, Cassie filed a civil lawsuit against Diddy in which she alleged that Combs raped her in 2018 and subjected her to years of physical and other abuse. The lawsuit was settled within 24 hours on undisclosed terms.

"We have decided to resolve this matter amicably. I wish Cassie and her family all the best. Love," Diddy said in a statement after the settlement was announced.

During her testimony today, Cassie revealed the settlement amount:

$20 million

That figure is the first confirmed detail to emerge from what had previously been one of the most secretive and high-profile settlements in recent memory.

Cassie's disclosure came under oath, during questioning about the events that led to her lawsuit and her eventual decision to settle. Her admission sent a ripple through the courtroom and confirmed long-swirling speculation that Diddy had paid a substantial sum to keep her allegations from proceeding to trial.

Cassie's testimony is expected to play a central role in the government's case against Diddy, whose trial is expected to last several more weeks. Her revelations offer a firsthand look into the alleged culture of control and exploitation that prosecutors claim defined Combs' private world.

More witnesses are expected to testify in the coming days, as federal prosecutors attempt to prove that Diddy operated a network of manipulation and abuse behind the scenes of his billion-dollar empire.

Will Cassie Owe Taxes on the Settlement?

Even though she absolutely deserved the full amount, unfortunately, Cassie probably did not walk away with the full $20 million. Because her claims involved emotional and psychological abuse, not documented physical injury, the IRS is likely to treat the entire sum as taxable income. Under U.S. tax law, only compensation for physical injuries or illness is exempt from income taxes.

She likely also had to pay legal fees from the settlement, and those would not have been deductible either. For example, if her lawyers got 10% (making that up, I have no idea), she would have to pay taxes on the full $20 million even though she only received $18 million (in this hypothetical example).

After taxes and attorney costs, her net payout could be closer to $10–12 million.

Whatever she ultimately keeps from the settlement, the significance of Cassie's testimony extends far beyond dollars. Her decision to speak out—first in a lawsuit, now on the witness stand—has helped expose what prosecutors describe as a long-running, deeply abusive operation orchestrated by one of the most powerful men in music.

With more witnesses expected to come forward, and the trial just beginning to unfold, Cassie's voice may prove to be not just the spark that ignited this legal firestorm—but the turning point in holding Diddy accountable.