The magazine's original report also claimed that the financially troubled actor had been accused of fraud, a claim which Cage's lawyer disputes.
"Any claims that Nic Cage engaged in fraud or wrongful conduct is absurd and ridiculous," Marty Singer, Cage's lawyer told the magazine.
In an article published Saturday, People explained that the company, Red Curb Investments, is suing Cage for failure to pay back approximately $3 million in loans. A seperate suit has also been brought against Cage's former accountant and mortgage broker for $3 million each, claiming that the pair defrauded the company by not fully disclosing Cage's finances.
Cage, who owes $6.3 million to the IRS and has defaulted on a $2 million bank loan, blames his accountant for his money woes and is fighting him in court. Cage has reportedly begun to make up the difference by selling homes, cars and yachts.
The accountant, Samuel Levin has countersued, accusing the actor of “compulsive, self-destructive spending.”
In December, Christina Fulton, the mother of Cage’s son Weston, filed suit for $13 million.
Fulton, 42, has claimed in court records that Cage broke a contract after promising her a L.A. home to raise their son in then telling to scram in September. She also blames Cage for her own tax problems and for her credit card debt.
“We expect this [Fulton's] lawsuit to be promptly thrown out," Cage's lawyer told People.