As TMZ report, the DJ and producer is being sued by Noque Touring, the company behind the festival which was in its debut year.
Noque reportedly wired $50,000 to Mustard and arranged for transport, accomodation and flights but he pulled out just days before the festival was due to go ahead.
The company is allegedly suing Mustard for, “trashing its good name and to get back the money … plus damages.”
Before the festival Mustard tweeted, “unfortunately the business behind this show wasn’t handled properly in time for me to make it there.”
The organisers, however, said that they were “confused” by his comments on social media.
“Promoters are disappointed for the fans that DJ Mustard has decided not to travel to Australia and is confused by his comments and decision to not attend,” they said in a statement.
Lil Wayne, Tyga, Metro Boomin and more made it to Australia for the festival which went down in both Sydney and Melbourne.
Mustard is yet to respond to the lawsuit.