EXCLUSIVE: Fat Joe Says He Lost $10M Over Bogus Extortion Plot; Gets Aggressive With New Response

Fat Joe

Fat Joe accused Tyrone Blackburn of spreading false sex trafficking claims that cost him millions and now the rapper is seeking $15 million.

Fat Joe has filed a blistering amended complaint against attorney Tyrone Blackburn and former hype man Terrance Dixon, accusing them of launching a smear campaign with fabricated claims of sex trafficking, statutory rape and other serious crimes in what he calls an extortion attempt that cost him over $10 million.

The original lawsuit filed by Blackburn and Dixon accused Fat Joe of a five-year relationship with a 16-year-old girl named “Nikki,” alleging he flew her across state lines and internationally, implying sex trafficking violations.

The complaint also accused him of unpaid wages, ghostwriting theft and ordering violent retaliation against Dixon. The Bronx rapper claims the accusations were not only false but also weaponized to damage his reputation and force a payout.

According to documents obtained by AllHipHop, the damage was immediate and widespread, with endorsement deals, media appearances and business ventures abruptly canceled after the allegations surfaced.

A major television network pulled the plug on a $30,000 deal for three primetime appearances, citing “current events.” His podcast Joe & Jada lost three major sponsors, including one that backed out of a $675,000 advertising agreement.

Another dropped a $400,000 deal and a third canceled a $40,000 package—slashing the show’s ad revenue by more than 30%.

Fat Joe, who co-owns the men’s grooming brand Rewind It, said negotiations with three national retailers collapsed within days of the lawsuit’s filing.

He estimates personal losses of over $10 million from those deals alone, including $7 million from the largest retailer. Additional business partners also distanced themselves, leaving projects in limbo.

Fat Joe claims the duo used the accusations as leverage to get him to pay a multimillion-dollar settlement. He says they even threatened to involve Homeland Security if he didn’t comply.

The filing also directly targets Blackburn’s professional conduct. Federal judges have previously criticized Blackburn for what they described as “unethical” legal tactics, including filing lawsuits filled with “salacious allegations” meant to pressure quick settlements.

One judge said his filings were “replete with inaccurate statements of law” and “inappropriate ad hominem attacks.”

Adding to Blackburn’s troubles, he was arrested in June 2025 for felony assault after allegedly running over a process server with his vehicle while trying to avoid being served in this very case.

Fat Joe’s complaint also cites a police report involving Blackburn and his ex-girlfriend’s best friend. The woman told police Blackburn sent her threatening messages and made her “fear for her safety.”

She reportedly told officers she “does not know what Mr. Blackburn is capable of.”

Fat Joe is seeking at least $15 million in damages, along with injunctive relief and other remedies.