According to the suit, rapper Combs, known as P Diddy, signed Cassie to his record label and allegedly controlled her through a lavish lifestyle of drugs and alcohol.
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The two reached a settlement on Friday evening, but did not provide any details about the terms, the New York Times reports.
Cassie, whose full name is Casandra Ventura, broke the news in a statement that said: “I have decided to resolve this matter amicably on terms that I have some level of control.
“I want to thank my family, fans and lawyers for their unwavering support.”
Combs also released a statement that said: “We have decided to resolve this matter amicably. I wish Cassie and her family all the best. Love.”
The settlement erases any possibility of a trial which could have seen more accusations by Cassie’s lawyers and cross-examination by Diddy’s defense attorneys.
Cassie met P Diddy in 2005 at just 19 years old when she was trying to break into the music scene.
She was signed onto his successful label and released hits like Me & U and Long Way 2 Go while they were in a long-term relationship.
But in the background, the two allegedly had a turbulent relationship with violent episodes that left Cassie bloodied and bruised, the lawsuit states.
According to the suit, Combs would beat Cassie to the point where she had to spend days in a hotel room recovering before she could be seen in public.
One of the most disturbing parts of the lawsuit was an allegation that the Bad Boy for Life would pile Cassie with drugs and force her to have sex with male prostitutes.
He would allegedly record the encounters and keep them to masturbate to later, according to the suit.
Combs had full control over Cassie’s life, the suit alleges, including her housing, wardrobe and even medical records.
The power dynamic left Cassie feeling helpless and too scared to ever approach the police, the lawsuit stated.
Soon after the suit was filed in Manhattan, Combs’ lawyer Ben Brafman said that his client denied the allegations which he deemed offensive and outrageous.
He claimed that Cassie had been seeking a payout of $30 million from Combs and threatened she would write a tell-all book filled with “blackmail,” Brafman said.
I have decided to resolve this matter amicably on terms that I have some level of control.Casandra Ventura
“Despite withdrawing her initial threat, Ms. Ventura has not resorted to filing a lawsuit riddled with baseless and outrageous lies, aiming to tarnish Mr. Comb’s reputation and seeking a payday,” he said.
P Diddy is known as one of the biggest players in the rap and R&B game and has worked with artists like Mary J Blige and The Notorious B.I.G.
His record label Bad Boy Records was said to be worth around $100 million at its peak.
Just last year, Diddy’ received a lifetime achievement honor at the BET Awards and was given the global icon award at MTV’s Video Music Awards.
But the public lawsuit could hurt his celebrity as other players in the music scene started to fire off their own allegations.
Members of the singing group Danity Kane, who were once managed by Combs, voiced their support for Cassie after describing their fraught relationship with the rapper.
Dawn Richard, a member throughout the group’s entirety, voiced her support for Cassie after news broke of the filing.
She wrote: “Praying for Cassie and her family, for peace and healing.
“You are beautiful and brave.”
Another prominent member Aubrey O’Day reposted a headline on Instagram and wrote, “Been tryna tell y’all for years. Prayers up for this queen.”
Danity Kane severed their relationship with Diddy in 2013 after a brief hiatus.
In a statement, one of Cassie’s lawyers Douglas Wigdor said: “I am very proud of Ms. Ventura for having the strength to go public with her lawsuit. She ought to be commended for doing so.”