Sean ‘Diddy’ Combs Settles Lawsuit Against Diageo, Ends Ownership Stake in Cîroc Vodka, DeLeón Tequila

Sean P. Diddy Combs is accused of gang rape in a new lawsuit related to events that allegedly occurred in 2003 in Manhattan, New York City. (Photo: Associated Press/Patricia Schlein)

Sean “Diddy” Combs has dropped his long-fought legal battle against Diageo accusing the British spirits giant of mismanagement and racism.

The complicated saga dates back to May 2023, when Combs publicly accused Diageo of “racially typecasting” his brands Cîroc Vodka and DeLeón Tequila. Following months of back and forth — and an early ruling in Diddy’s favor — the suit has now been amicably settled.

“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 Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice,” said both parties in a joint statement released Tuesday morning.

“Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón tequila, which Diageo now solely owns.”

Combs, the billionaire music mogul behind Bad Boy Records, has faced four sexual assault lawsuits since November. The wave of graphic misconduct allegations was first brought to light by ex-girlfriend Cassandra Ventura before quickly being settled out of court. In the weeks after, three other women came forward alleging incidents dating back to the early 90s.

The abrupt settlement between Combs and Diageo ends a highly publicized battle that was fought in the New York State Supreme Court.

Combs and Diageo first teamed up in 2007 as equal parts owners of Cîroc Vodka. Following the brand’s runaway success, Combs doubled down and inked a similar co-ownership deal for DeLeón Tequila in 2013.

In his initial May lawsuit, Combs alleged that Cîroc and DeLeón were stereotyped as “‘black brands’ that should be targeted only to ‘urban’ consumers.” According to Combs, Diageo routinely neglected his spirits in favor of investments like Casamigos and Don Julio. Diageo eventually countersued, alleging that Combs was “weaponizing public accusations of racism” after attempting to extort the company for $100 million in COVID recovery funds.

Though the exact terms of the settlement have not been disclosed, Combs has allegedly cut all business ties with his former spirits imprints.

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