Sean “Diddy” Combs and alcohol brand Diageo settled Tuesday regarding a lawsuit over their tequila partnership.
Combs claimed in the lawsuit that Diageo had breached their agreement by failing to adequately support his DeLeón brand of tequila. He then accused Diageo of treating his product line “worse than others because he is Black.”
While the terms of the settlement were not disclosed, Diageo and Combs said in a joint statement that the agreement would leave the two with “no ongoing business relationship,” removing Combs from any further involvement in not just DeLeón but also the company’s popular Cîroc vodka.
“Sean Combs and Diageo have now agreed to resolve all disputes between them,” the two sides said in a joint statement. “Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice.”
Combs sued Diageo last May, claiming the company breached his partnership deal for DeLeón. He went on to claim that Diageo had “typecast” the tequila as a “Black brand” that could only be sold to “urban” consumers, resulting in a decrease in sales compared to competing Diageo brands like Casamigos and Don Julio.
“Cloaking itself in the language of diversity and equality is good for Diageo’s business, but it is a lie,” Combs’ lawyers wrote. “While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion.”
Diageo denied the claims shortly after. “These allegations are nothing more than opportunistic attempts to garner press attention and distract the court from the fact that plaintiff’s breach-of-contract claim is entirely without merit,” the company’s attorneys wrote. “Diageo categorically denies these accusations.”
The lawsuit follows the multiple sexual assault allegations against the rap mogul.
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