Diageo Severs Ties with Sean "Diddy" Combs Amid Racism Lawsuit
[Associated Press] - Spirits giant Diageo has announced its decision to cut ties with renowned rapper and entrepreneur Sean "Diddy" Combs in the wake of a lawsuit filed against the company alleging racism in the handling of Combs' liquor brands. According to a court filing on Tuesday, Diageo cited Combs' legal action as the reason for the partnership termination.
The lawsuit, which was filed last month with the New York Supreme Court in Manhattan, claims that Diageo North America deliberately withheld resources from Combs' Cîroc vodka and DeLeón tequila brands while giving preferential treatment to other celebrity brands. Combs, an influential figure in the Black community, asserted that Diageo executives limited distribution to "urban" neighborhoods and impeded the growth of his brands due to his race. The lawsuit seeks billions of dollars in damages and further legal proceedings against Diageo, alleging discrimination.
In response, Diageo has vehemently denied the accusations and labeled Combs' lawsuit a "sham action." The company, in its filing, called for arbitration or dismissal of the complaint, accusing Combs of making "false and reckless" allegations in an attempt to extort additional funds from the company.
As part of its decision to sever ties, Diageo also revealed that it had terminated its brand partnerships with Combs and served notices of intent to arbitrate breaches of the DeLeón agreement and terminate their Cîroc relationship.
Diageo's association with Combs dates back to 2007 when the London-based spirits company approached him regarding Cîroc. According to the filing, throughout their 15-year relationship, Combs has accumulated nearly $1 billion in revenue. However, Diageo argues that Combs did not fulfill his obligations as an equal partner, claiming that the company provided the majority of funding, approximately $100 million, for the joint venture while Combs only contributed $1,000.
Diageo justified its decision, stating, "Mr. Combs' bad-faith actions have clearly breached his contracts and left us no choice but to move to dismiss his baseless complaint and end our business relationship. We have exhausted every reasonable remedy and see no other path forward."
In response to Diageo's move, attorneys representing Combs Wines and Spirits issued a statement likening the termination to "firing a whistleblower who calls out racism." They described Diageo's attempt to sever ties as a cynical and transparent ploy to divert attention from multiple allegations of discrimination. Combs' legal team emphasized that the lawsuit was filed to hold Diageo accountable and ensure compliance with the contract, vowing that the lawsuit and Combs himself will persist.
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