Dawn Richard, a former singer for Bad Boy Records, has filed a lawsuit accusing music mogul and the label's founder Sean "Diddy" Combs of sexual assault and battery, sex trafficking, gender discrimination and fraud, according to court documents.

Richard filed the suit on Tuesday in the Southern District of New York, also suing former Bad Boy Entertainment CEO Harve Pierre.

The legal action by Richard was filed one day after a Michigan prison inmate was awarded a $100 million judgment against the rapper, a judgment Combs' attorney said he would seek to have dismissed.

The inmate, Derrick Lee Smith, had accused Combs of drugging and sexually assaulting him at a party almost 30 years ago.

Richard belonged to girl group Danity Kane and R&B trio Diddy Dirty Money, which included Combs and singer Kalenna Harper. The groups were part of Bad Boy Records.

Combs' attorney, Erica Wolff, said in a statement on Tuesday that the rapper is eager to prove Richard's claims are false in the courtroom.

"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 payday — conveniently timed to coincide with her album release and press tour," Wolff wrote.

"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," she added.

During her time working with Combs, Richard alleged in the suit, the rapper repeatedly groped her, was physically violent, and trapped her in a car while threatening her life.

Richard met Combs during her audition for his MTV series "Making the Band" in 2004, which was when she alleges he began displaying inappropriate behaviour.

"(Combs) manipulated her with mantras that submission to his depraved demands was necessary for career advancement, instilling in her the belief that such abuse and exploitation were required for female artists to succeed in the music industry," the lawsuit said.

In the lawsuit, Richard also said she witnessed Combs abusing his then-girlfriend, the R&B vocalist Cassandra Ventura. Last year, Combs settled a lawsuit filed by Ventura that had accused him of serial physical abuse, sexual slavery and rape.

Combs is one of the most influential producers and executives in hip-hop and was a hugely successful performer, as well as the impresario of his own Sean John clothing line.