Beverage company Diageo has terminated its partnership with rapper and music producer Sean “Diddy” Combs following his filing of a lawsuit against the spirits maker, accusing them of racist treatment towards his liquor brands. The lawsuit, submitted to the New York Supreme Court in Manhattan, alleges that Diageo North America withheld resources from Combs’ Cîroc vodka and DeLeón tequila brands, resulting in limited distribution and hindered sales growth compared to brands associated with White celebrities.
Combs, who is Black, claims that Diageo acknowledged the role of race in their decision to limit the distribution of his brands to “urban” neighborhoods. Diageo has denied these allegations and labeled the lawsuit as a “sham action.” The company has filed legal documents in an attempt to dismiss Combs’ suit, calling his claims “false and reckless” and accusing him of seeking additional billions from the company.
Diageo has also announced the termination of its brand partnership with Combs, issuing a notice of termination for their Cîroc relationship. Combs, however, has stated that the termination does not deter him from pursuing his lawsuit. Combs’ lawyer, John C. Hueston, emphasized that Diageo’s attempt to end their deals is similar to firing a whistleblower who exposes racism, and aims to divert attention from the multiple discrimination allegations raised against the company.
In response, Combs plans to seek billions of dollars in damages in further legal proceedings against Diageo. The partnership between Combs and Diageo began in 2007 when the London-based company approached Combs about Cîroc. Diageo acknowledges their successful collaboration, highlighting the financial success of Cîroc vodka, and states that Combs has gained nearly $1 billion throughout their 15-year relationship. The company characterizes the situation as a business dispute and expresses disappointment that Combs has portrayed it otherwise.
Khristopher J. Brooks is a CBS MoneyWatch reporter specializing in business, consumer, and financial stories ranging from economic inequality and housing issues to bankruptcies and the business of sports.
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