"This is a ridiculous, categorically false story. No one was ever aware of this story until it was published today, including Mr Stallone. At no time was Mr Stallone ever contacted by authorities or anyone else regarding this matter," a representative for Stallone told Fox News.
The unidentified accuser filed a report in 1986 with Las Vegas police after Stallone and bodyguard Michael de Luca "intimidated" her into sex with both men.
The actor, who was 40 at that time, was in Sin City filming the arm-wrestling movie "Over the Top" at the time, and the girl was vacationing with family friends.
The teenager ultimately decided not to pursue charges against the "Cop Land" actor because she feared retribution.
The police report noted the teen became "emotionally upset" numerous times while recounting the sordid incident to investigators.
The teen later signed a no-prosecution order and cops dropped the case.
Disclaimer: No Business Standard Journalist was involved in creation of this content