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In an intention to sue letter, the advocates said that the posts were "defamatory, offensive and abusive."
According to the letter, the posts "harassed, scandalised and spoiled the reputation" of their "client with malice and callousness."
"The content amounts to libel which is an offense created under Section 179, 180 (1) and 181 of the Penal Code Act Cap 120 on top of being actionable in our civil courts," reads the letter.
The letter says that if she doesn't pay that money, it will increase the fine by "hundreds of millions" and inspire "costly litigation."
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The time limit for payment wasn't set.
Dancehall made it clear that she is ready to serve in prison because she doesn't have the money.
"I don't have money... nothing... So, Roger if you want to take me to prison, I will serve, but at least the world knows the truth," Dancehall said while speaking to Spark TV.
During the interview, she said that after the concert she posted on her WhatsApp Status criticising Diana's show held at Lugogo Cricket Oval and someone shared the information with Source Management, the record label that manages Diana.
Roger Lubega owns Source Management.
After receiving the information, Dancehall said, Lubega called her to confront her about dissing their concert.
"If I find out that you abused me, I'll do something you will never forget," Dancehall claims Roger said over the call.
"... I didn't abuse her music, because I enjoy Diana's music and I have used them in my videos... I only commented on the show that was in Lugogo."
Dancehall said that Diana also promised to beat her.
Their squabbles became public after Dancehall took to TikTok to reveal that Lubega had threatened to kill her.
Lubega also responded assuring her that she deserves a beating.