A source close to Paradise told ET that the show's suspension came after a producer became uncomfortable when Jackson and fellow Paradise castmember Corinne Olympios allegedly starting hooking up in the pool after the cast had been "drinking all day."
"It's unfortunate that my character and family name has been assassinated this past week with false claims and malicious allegations," the 30-year-old reality star said in a statement released by his publicist, Eve Sarkisyan-Nunn, to ET on Wednesday.
"I will be taking swift and appropriate legal action until my name is cleared and, per the advice of legal counsel, will be seeking all available remedies entitled to me under the laws," Jackson's statement continued.
On Tuesday, Olympios told ET in statement, "Although I have little memory of that night, something bad obviously took place, which I understand is why production on the show has now been suspended and a producer on the show has filed a complaint against the production."
The reality star went on to explain that she had retained legal representation to ensure that what happened "comes to light and I can continue my life, including hiring an attorney to obtain justice and seeking therapy to begin dealing with the physical and emotional trauma stemming from that evening."
Olympios has hired powerhouse attorney Marty Singer, who has dealt with many high-profile celebrity cases in the past.
As ET previously reported, a source at the time told ET, "Corinne says she doesn't remember much of anything… After the incident with DeMario and Corinne, some producers were gone the next day and nobody knew why."
An additional source told ET that Jackson was also heavily intoxicated at the time.
For now, the incident remains under investigation by the production company. No further information regarding the nature of the stated allegations of misconduct has been released.