Once an influential figure in the Hip-Hop world, Damon Dash could be on the cusp of losing State Property, his popular 2002 cult classic film.
As per AllHipHop, a California court is considering whether to approve the forced auction of Dash's assets, including other IP, following a protracted legal battle with filmmaker Josh Webber.
The conflict stems from a contentious battle over the 2019 film Dear Frank, which Webber directed and Dash allegedly misrepresented as his project after being removed from production.
The case resulted in an $805,000 judgment against Dash in 2022 for copyright infringement and defamation.
Since then, the fallout has escalated.
In 2025, Dash was ordered to pay an additional $4 million in defamation damages after publicly calling Webber a "d***head" and accusing him of theft during an appearance on the Earn Your Leisure podcast.
Webber alleges the comments cost him a $4 million directing deal with actor Billy Bob Thornton.
Webber and his company, Muddy Water Pictures, are now asking the court to approve the forced sale of Dash's assets, including copyrights to State Property, Honor Up, and Mr.
Untouchable — to recover unpaid legal fees and damages.
Personal items such as Dash's Roc-A-Fella chains, an engagement ring, and other gold and diamond jewelry are also being targeted.
Damon Dash's Failure to Comply
According to court filings, Dash and his companies — including Poppington LLC and Dash Films Inc. — have failed to comply with numerous court orders since 2019, including demands to turn over financial records and discovery materials.
"Despite multiple court rulings and monetary sanctions, Mr. Dash has continuously refused to participate in the legal process,"
Webber's attorney stated in a recent filing.
"This pattern of defiance leaves us with no alternative but to seek a court-authorized auction of his intellectual property."
The court is being asked to compel Dash to produce documentation detailing the ownership of his business entities, including Blackroc LLC, The Dash Group LLC, Lebanon Improvements LLC, Ocean East Improvements LLC, and 1996 Songs LLC.
The goal is to enable the U.S. Marshal's Office to proceed with the asset sale.
State Property, released in 2002, is considered a seminal work in early 2000s Hip-Hop cinema.
Produced by Dash and starring Beanie Sigel, the gritty crime drama also featured appearances from Jay-Z and other Roc-A-Fella artists.
The film became a cult favorite and spawned a sequel.
Despite its cultural impact, the film's future now hangs in the balance as Dash faces the possible loss of one of his most significant contributions to Hip-Hop media.
Neither Dash nor his legal team has publicly responded to the most recent court filings.
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