Diageo Settles Racism Dispute With Sean ‘Diddy’ Combs

Diageo Plc has settled a lawsuit with Sean Combs after the music mogul sued the British drinks company, accusing it of underinvestment in brands he fronted.

Combs, known as Diddy, had accused the spirits company of racism in neglecting liquor brands Cîroc Vodka and DeLeón Tequila, but has now withdrawn his allegations, Diageo and Combs said Tuesday. Combs since November has been accused of sexual violence in four separate lawsuits.

Diageo will be the sole owner of DeLeón and will have no further business relationship with Combs. No financial terms of the settlement were disclosed.

The accusations of racism shook Diageo as they appeared to undermine its track record in diversity — a legacy of former Chief Executive Officer Ivan Menezes, who died in June.

Combs claimed in his suit that Diageo’s commitment to diversity in its business relationships was merely lip-service, and that it failed to adequately promote DeLeón, a tequila they co-owned. As evidence of bias, he pointed in his suit to the company’s $1 billion acquisition and marketing of the Casamigos tequila brand co-founded by actor George Clooney.

Diageo said in its court filing that it was Combs who failed to support his brands, putting only $1,000 into the joint venture while the company invested more than $100 million. Combs’ lawyers said he had fulfilled all his financial obligations.

Diageo and Combs were arguing in court over whether Combs would continue personally marketing DeLeón when in November his former girlfriend and singer Casandra Ventura, known as Cassie, accused him of years of sexual abuse, rape and sex trafficking. Combs settled the suit the next day while his lawyer said this was not an admission of wrongdoing. In December, after several other women came forward accusing him of sexual violence, he reiterated his innocence in an Instagram post.

Diageo shares were down 0.5% on Tuesday afternoon, recouping some losses after the settlement was announced.

(Updates with details of settlement, background)

Top photo: Diddy performs at O2 Shepherd’s Bush Empire in a special one night only event at O2 Shepherd’s Bush Empire on November 07, 2023 in London, England. (Photo by Samir Hussein/Getty Images for Sean Diddy Combs)