Combs has described the allegations as "pure fantasy"

Kirk Burrowes says Combs - also known as P Diddy - forced him to hand over his 25% stake in the rapper's music empire Bad Boy Entertainment.

Mr Burrowes was president and general manager of Bad Boy from 1992 until he was sacked in 1997.

But Combs has described the allegations as "pure fantasy".

The lawsuit for racketeering and breach of contract was filed in Manhattan's federal court on Monday.

'Fictional story'

Mr Burrowes said he was promised a share in Bad Boy's equity and profits after forming the company with Combs in 1992.

He claims Combs, who has gone on to find global success as a rapper and producer, threatened him with a baseball bat in 1996 and forced him to surrender his 25% stake.

Mr Burrowes was fired in 1997 but claims Combs promised him he would still receive a slice of the profits.

He only found out in 2002 that this was not true, his lawsuit says.

But Combs said: "Kirk Burrowes hasn't been employed for seven years and now he makes up a fictional story for financial gain.