After seven years of litigation, a judge says the executive was an "eyewitness" to the 2017 incident and has knowledge that "cannot be obtained from other witnesses."
A Miami judge signed off on the couple's confidential agreement one year after the Jonas Brothers singer filed for divorce.
Associated Production Music, a joint venture of Sony Music Publishing and Universal Music Publishing, says the pharma giant used the music in nearly 80 different videos.
The singer previously revealed his license was revoked following the incident.
In this week's Legal Beat, the feds finally take streaming fraud to court, the White Stripes sue Donald Trump, Spotify beats a case over Eminem's music, and much more.
The huge damages award came after Diddy failed to respond to the allegations. His lawyers say he was never served and the accuser is committing "fraud on the court."
The band's lawyers say that any connection to the former president is "offensive" because they "vehemently oppose" his bid for another term.
Eminem's publisher claimed Spotify failed to get licenses for huge hits like "Lose Yourself," but a judge now says the lawsuit was unfairly manufactured to maximize damages.
The band, best known for hits like "American Woman" and "These Eyes," is the latest in a long line of classic rock acts to fight over a decades-old name.
The musician, Michael Smith, was allegedly aided in his scheme by a number of co-conspirators as well as the CEO of an unnamed AI music company.