Damon Dash faced a significant legal setback when a California judge issued a $4 million default judgement against him for defaming filmmaker Josh Webber. The judgement was a result of Dash's failure to comply with court orders, including skipping mediation sessions and neglecting to submit required pre-trial documentation. This legal issue stemmed from Dash's appearance on a podcast, where he made derogatory remarks about Webber. The filmmaker claimed that Dash's comments caused him to lose a $4 million film deal with Billy Bob Thornton. Despite Dash's claims of freedom of speech, he now must address the substantial judgement or face potential seizure of his assets.