Damon Dash Uses Lee Daniels Settlement Money to Pay off $400,000 Debt

Damon Dash is using the money Lee Daniels paid him to settle a $400,000 legal battle he's been dealing with for years.

According to court documents obtained by The Blast, Dash recently settled a debt owed to a company named Kerison & Willougby Capital. The company had been trying to collect on a 2011 judgment they were awarded for years and even tried unsuccessfully to sell off interest in his company with ex-wife Rachel Roy to satisfy the debt.

In the docs, Dash says that in November 2018, he reached a confidential settlement with Kerison. Per the terms of their deal, "monies owed to Dash from a third-party are being paid" to Kerison.

Dash boasts that he, “through his own exclusive efforts," satisfied the debt and wants the court to order it’s been paid in full.

The deal came the same month that Dash dropped his legal battle against Daniels, in which he accused the director of breach of contract involving the Richard Pryor biopic they had both planned to work on.

In the lawsuit, Damon Dash sued Daniels claiming that a 2015 agreement made it clear that Dash would get a co-executive producing credit on the Pryor project and also 5% of the profits that Daniels would eventually earn on the back end.

Dash said Daniels did not make an effort to fulfill his obligations and had been kept in the dark about the details of production and the progress of the film.

The two sides reached a confidential settlement.