Talent Agency Sues Puff Daddy Over Dream

Suit claims Fontaine & Daughters Productions discovered Dream in 1998, contrary to Bad Boy's account.

Sean "Puffy" Combs' girl group, Dream, might be giving him nightmares these days.

A talent agency claiming to have discovered the group is suing Combs and Dream for unfair competition in a suit filed Wednesday in Los Angeles Superior Court.

Talent agent Judith Fontaine, owner of Fontaine & Daughters Productions, claims that her agency put the group together in 1998 after a nationwide talent search. A Dream biography by Combs' Bad Boy Records credits Kenny Burns of 2620 Music —­ Dream's current management —­ with founding the group.

Combs' lawyer Kenny Meiselas issued a statement Thursday calling the action "a nuisance lawsuit that is groundless and without merit." The statement accuses Fontaine of cashing in on Dream's current success. The group's debut single, "He Loves U Not," is #3 on the Billboard Hot 100 singles chart, and its first album, It Was All a Dream, is set to come out Tuesday.

"The group members, their names and songs are all different, and any interest Ms. Fontaine had with the remaining members was terminated years before the girls even met Puffy," Meiselas said in the statement.

Fontaine was unavailable for comment.

Also named in the lawsuit are Bad Boy, Burns and Arista Records.

In other Puffy legal woes, jury selection continues in the rap mogul's trial on weapons possession charges, stemming from a 1999 shooting in New York.