Diageo Files Countersuit Against Former Partner Sean Combs
October 3, 2023After severing ties with longtime partner Sean “Diddy” Combs this summer, Diageo has filed a countersuit against Combs in New York state court. The suit elaborates on parts of the ongoing dispute between Diageo and Combs, whom the drinks giant says refused to fund the two parties’ joint venture on DeLeon Tequila.
Diageo says it devoted $100 million to the joint venture, with Combs offering only $1,000, along with a promissory note. According to Diageo, Combs made nearly a billion dollars over the course of the companies’ 15-year relationship on DeLeon as well as Ciroc vodka, but the entertainer and entrepreneur continued to attempt to extract additional money under the threat of leveraging claims of racism against the company.
Diageo was initially denied in its bid to send the dispute with Combs to arbitration but is appealing that decision. In the meantime, its countersuit marks another salvo in the ongoing battle, which began earlier this year when Combs filed his own suit against the spirits titan for allegedly targeting DeLeon and Ciroc only to Black consumers. Diageo has forcefully denied that claim, asserting that, if anything, DeLeon has received disproportionately favorable attention and resources within its Tequila portfolio.—Daniel Marsteller
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