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Diageo Makes Another Bid At Arbitration In Combs Case

October 9, 2023

Diageo is formally appealing a New York state court decision to deny its bid to arbitrate its ongoing dispute with Sean “Diddy” Combs, its former business partner on Ciroc vodka and DeLeon Tequila. The move comes after New York Supreme Court Justice Joel Cohen rebuffed Diageo’s request for arbitration in the case for a second time last week. Diageo is asking the New York Supreme Court Appellate Division to stay proceedings in its trial against Combs until its appeal for arbitration can be ruled upon.

The drinks giant recently filed a countersuit against Combs in New York state court, elaborating on the dispute. It asserts that Combs refused to fund the two parties’ joint venture on DeLeon Tequila, and later attempted to extract additional money under the threat of leveraging claims of racism against the company. The battle began earlier this year when Combs filed his own suit against the spirits titan for allegedly targeting DeLeon and Ciroc only to Black consumers.—Daniel Marsteller

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