News Alert: Diageo, Combs Settle DeLeon Dispute, All Lawsuits Cease

After an intense legal dispute dating back to last spring, Diageo and former partner Sean “Diddy” Combs have settled out of court, with Diageo gaining control of the DeLeón Tequila brand. No terms were disclosed.

In a joint statement, Diageo and Combs said, “Sean Combs and Diageo have now agreed to resolve all disputes between them. Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice. Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón Tequila, which Diageo now solely owns.”

Combs ignited the dispute last year by claiming that Diageo typecast the DeLeón and Ciroc brands to Black consumers, holding them back in the market, which Diageo denied. Subsequently, Diageo severed all business ties with Combs–who the company said earned $1 billion over the course of their partnership while failing to live up to his obligations–with Diageo later seeking to prevent Combs from appearing as the face of DeLeon Tequila, following multiple sexual assault allegations against him in recent months.

Diageo will now go it alone on Ciroc and DeLeon, with the vodka brand now at around 1.4 million cases in the U.S. according to Impact Databank, and DeLeon rising markedly in recent years, to over 120,000 cases.—Daniel Marsteller

GET YOUR FIRST LOOK AT 2025 ESTIMATES AND 2030 PROJECTIONS FOR THE WINE AND SPIRITS INDUSTRIES. ORDER YOUR 2025 IMPACT DATABANK REPORTS. CLICK HERE.