Sean “Diddy” Combs has accused Diageo, his business partner, of engaging in “illegal retaliation.” This accusation has intensified the legal battle between the music mogul and the spirits conglomerate. Diageo, which previously distributed Combs’ Ciroc vodka and DeLeon tequila brands, recently cut ties with him after he filed a lawsuit alleging racism in the promotion and distribution of his liquor labels. Combs’ lawyers filed documents in New York State Supreme Court stating that “if you dare to shed light on Diageo’s conduct, you will be punished.” Despite Diageo asking the court to dismiss the lawsuit, Combs’ lawyers have called this motion “smoke and mirrors” and urged the court to ignore it. Combs’ lawyer, John Hueston, stated that Diageo’s attempt to retaliate against Combs for asserting his legal rights will not succeed in court. The 53-year-old entrepreneur claims that Diageo unlawfully ended their partnership in response to his accusation of racism. In response, a spokesperson for Diageo declared that this dispute is purely a business matter and should not be portrayed as anything else. The company further asserted that they had the contractual right to terminate the marketing services agreement for Ciroc and wind down the DeLeon joint venture. They stated that their actions were motivated by a desire to protect the significant investment made in both brands. The spokesperson argued that Combs’ actions, false accusations, and breaches of contract overwhelmingly support Diageo’s decision to sever ties. The legal feud initially began in May when Combs accused Diageo of sabotaging his DeLeon brand with subpar packaging that cheapened the product’s appearance. Combs also claimed that Diageo failed to provide sufficient support for production, distribution, and sales as promised. The court documents alleged that Diageo labeled Ciroc and DeLeon as “urban,” “African American,” and “black” brands based on the misguided belief that a black entrepreneur could only appeal to those who shared his skin color. Meanwhile, Combs pointed out that Diageo invested over $1 billion in George Clooney’s Casamigos tequila brand, marketed it to consumers of all races, and achieved significant sales despite having only white founders. Although the court documents did not mention the amount of money Diageo invested in Ciroc and DeLeon, they acknowledged that Combs played a crucial role in transforming struggling Ciroc from selling a meager 75,000 cases annually to millions in just a few years. In Diageo’s motion to dismiss Combs’ lawsuit, the company claimed to have invested over $100 million in the DeLeon venture, while asserting that Combs only made a $1,000 initial capital contribution. Combs’ attorney refuted this claim, stating that Combs fulfilled all his obligations under the joint venture agreement, including funding. Hueston argued that under the agreement, Diageo was responsible for funding the joint venture and ensuring sufficient production and distribution, while Combs used his global popularity to market DeLeon. Combs’ association with Diageo dates back to 2007 when the London-based company approached him about Ciroc. Throughout their partnership, Combs has reportedly earned nearly $1 billion.
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