Damon Dash is getting hit where it hurts -- in his pockets -- because he's been ordered to cough up several million dollars in a lawsuit filed by an old nemesis.

According to new legal docs, obtained by TMZ, the movie and music producer was just hit with a $4 million default judgment in Josh Webber's defamation suit against him.

Webber filed the suit back in April 2024, claiming he lost out on a $4-million producing and directing gig because of some defamatory comments Damon made about him on a podcast.

In the lawsuit, Webber claimed Dame trashed him on the "Earn Your Leisure" podcast when he told the hosts Webber stole from him in relation to their dispute over the movie "Dear Frank."

On the podcast, Webber claims Damon said ... "I had a judgment. And I knew this d***head Chris Brown and Josh Webber and Muddy Waters ... Chris Brown the lawyer. I went through four trials with the same lawyer ... What I lost was defamation because these guys trigger me and steal my s*** ... you think there is freedom of speech, it's really not."

Damon was referencing a previous legal battle with Webber over "Dear Frank" ... which, as we first reported, resulted in DD being ordered to pay Webber and the movie's producers over $800,000.

As for the defamation suit, Webber says the podcast clip racked up hundreds of thousands of views online and claims he was told the $4 million gig was canceled due to "Dash's accusations of theft."