UK alcohol giant, Diageo, has accused Sean ‘Diddy’ Combs of attempting to force parallel proceedings over the businessman and rapper’s claim of racial discrimination, telling a New York state court that the allegations belong in arbitration and are really just ‘about money’.
Earlier this year, a legal lawsuit was filed by Combs’s company last month in which the rapper accused Diageo of ‘typecasting’ Comb’s co-owned DeLeón tequila brand and Cîroc, specifically marketing it to ‘urban’ consumers, something which the company “categorically denies”.
Last month, the company made a statement to the New York court, saying Combs had made “false and reckless allegations, including numerous defamatory and disparaging accusations of racism on the part of Diageo and certain of its senior executives”.
However, now the British spirits company is claiming Comb’s allegations of racism influencing the marketing and stunting the sales of growth around the two alcohol brands, belongs to be solved outside court, believing the claims do not escape the expansive arbitration clause contained in Combs’ agreement with the group.
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The company has pointed out Combs’ statement in a July 19 filing opposing arbitration that his company, Combs Wines and Spirits LLC, “will seek damages for past harm elsewhere” — an assertion that “all but proves [our] point”.
“That statement, written by its attorneys in plain English, and consistent with CWS’s allegation that it intends to seek ‘billions’ in damages based on the same alleged facts, means that this case, like most contract cases, is really about money,” Diageo continued.
“In publicly asserting false and defamatory allegations against Diageo, Combs and his affiliates have committed multiple material and incurable breaches of the parties’ contracts, including with respect to brand protection, nondisparagement, and confidentiality,” Diageo added in Wednesday’s memorandum.
In response, Combs claims that Diageo’s decision to cut ties with him is unlawful retaliation, arguing court should allow him to modify his complaint to include recent developments.
The lawsuit accuses Diageo of failing to sufficiently support the production and distribution of DeLeon and Ciroc. Combs states that these liquor brands were deprived of resources and constantly labelled as “urban brands” within Diageo’s portfolio.
This is a contrast, as Combs points out, as to how the UK alcohol company invested over £776.9 million ($1 billion) into George Clooney’s Casamigos tequila, and actively markets it to a broader and more diverse audience.
