Maria Kristina Dominguez lost her $3 million privacy lawsuit on Wednesday against Sean "Diddy" Combs and Vibe Magazine.
Vibe Magazine published a topless picture of Dominguez, 28, in its November 2006 issue with the caption "Mermaids Gone Wild."
The photo has Dominguez dressed as a mermaid, along with two other women, at a swimming pool at a East Hampton party thrown in 2003 and appeared as a feature about Diddy's parties over the years.
Dominguez, a Wall Street hedge fund manager, said she didn't give permission for the photo to be taken and said its publication gave her "mental strain and distress and disturbance of peace of mind" while harming her reputation and causing her to lose certain business opportunities.
A Manhattan judge noted the woman can't claim an invasion of privacy when she was only wearing pasties. A lawyer says Dominguez is considering her legal options.
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