The 32-year-old singer was ordered to pay the producer, real name Lukasz Gottwald, $374,000 in late royalty fees on Thursday (February 7).
It marks the latest development in their ongoing legal feud, which began when Kesha initially sued Gottwald in 2014 and claimed he had sexually assaulted and emotionally abused her.
Gottwald then subsequently filed his own suit against the singer in 2017, alleging that she had breached their contract and made up false rape allegations in an effort to get out of the deal.
Kesha also accused Gottwald of sexually assaulting both her and Katy Perry, an allegation which Perry subsequently denied in a deposition.
In her ruling, New York Judge Jennifer G. Schecter said that Perry’s testimony, and a lack of evidence led to the conclusion that Kesha had defamed Dr Luke.
Judge Schechter said: “Perry unequivocally testified that Gottwald did not [rape her]. In response, Kesha has not raised a triable issue. There is no evidence whatsoever that Gottwald raped Katy Perry, or that Katy Perry, whose sworn testimony is unrefuted, must not be believed.”
But Schecter stressed that the ruling did not provide a definitive answer to whether Gottwald had sexually assaulted Kesha, which will be determined by a jury in a separate trial.
Kesha has now been ordered by the judge to pay some $374,000 in royalties to Gottwald’s company KMI.
Responding to the ruling in a statement, Dr Luke’s lawyer Christine Lepera said: ” Kesha abandoned her meritless case against Dr. Luke more than three years ago. The only remaining lawsuit is Dr. Luke’s case against Kesha for defamation and breach of contract. Dr. Luke is pursuing this lawsuit to seek recovery for the serious harm Kesha’s false accusations of rape have caused Dr. Luke, his family and his business.