Diddy and Drinks Giant Diageo Settle Dispute Over Tequila

Global drinks giant Diageo and rapper Sean Combs, famously known as Diddy, announced on Tuesday that they have resolved their legal dispute surrounding their shared spirits brands. The settlement comes after Diageo terminated its partnership with Diddy in June, triggering a lawsuit from the rapper who accused the company of racial neglect towards his tequila brand.

In a joint statement, both parties confirmed the withdrawal of all allegations made by Diddy against Diageo. The statement emphasized that there is no ongoing business relationship between the two, bringing an end to the legal wrangling.

Diddy, also facing sexual assault allegations, stated that he would “voluntarily dismiss his lawsuits against Diageo with prejudice.” The settlement marks a resolution to the legal turmoil that arose from Diddy’s claims of neglect regarding his tequila brand.

Diageo, renowned for brands such as Johnnie Walker, Guinness, and Tanqueray, severed ties with Diddy in June, citing the rapper’s failure to fulfill financial commitments to DeLeon Tequila, a brand they jointly acquired in 2013. Diageo claimed it invested over $100 million in DeLeon Tequila and attempted to salvage the deteriorating relationship with Diddy over the years.

While Diageo asserted that, despite making nearly a billion dollars over their 15-year association, Diddy contributed a mere $1,000 and refused to honor commitments, the settlement brings closure to the dispute. As a result, Diageo now assumes sole ownership of the Cîroc vodka and DeLeón tequila brands.

The resolution of this legal battle marks the conclusion of a chapter in the intricate history between Diddy and Diageo, clearing the path for both parties to move forward independently in the spirits industry.