Can’t nobody hold him down. Sean “Diddy” Combs has won the first round in the lawsuit against Diageo alleging that his spirits brands received worse treatment because of his race.
The Supreme Court of New York denied Diageo’s motion to dismiss the lawsuit and its motion to force the case into arbitration. The ruling, made Judge Joel M. Cohen on September 7, will allow Combs to engage in “broad discovery” aimed at uncovering evidence that the company didn’t support his liquor brands—Cîroc Vodka and DeLeon Tequila—in the same manner that it supports its other brands, according to John Hueston, Combs’ attorney.
“I’m fighting for fair and equal treatment for everyone,” said Combs. “This isn’t just about me. I look forward to continuing this fight in court. We all deserve the same 24 hours.”
The original complaint was filed by Combs Wines and Spirits, a company owned by Combs, in New York State Supreme Court in Manhattan against Diageo’s North American business in late May. Combs is seeking a court order asking Diageo to comply with their 2013 joint-venture agreement, in addition to written agreements between Combs and Diageo that the partners signed to resolve complaints by Combs, according to the filing. The filing states that Combs Wines and Spirits plans to seek “billions of dollars in damages due to Diageo’s neglect and breaches” in a separate lawsuit.
Among accusations of racial discrimination, the lawsuit also says Diageo has put more resources into the portfolio’s other tequilas, including fellow celebrity George Clooney’s Casamigos, which Diageo acquired in 2017 for up to $1 billion.
Diageo responded in June by severing ties with Combs, ending the two parties’ 15-year business relationship and claiming that the allegations were false and defamatory. Diageo asked the judge to send Combs’ lawsuit to arbitration or dismiss the complaint entirely.
Now, the judge has found that Combs had made appropriate claims concerning issues that needed to be addressed by way of injunctive relief, Hueston said. According to Hueston, Cohen said from the bench that the parties had clearly carved out the right to go to court for injunctive relief as opposed to arbitration (which would engage the two parties behind closed doors).
“This case has always been about getting fair and equal treatment,” Hueston said in a statement. “Today’s decision is an important step in the right direction. Diageo tried to end this action. Today the judge soundly rejected that effort.”
Diageo responded in a statement that while the company is “disappointed with today’s procedural decision, it is important to underscore that this is not a ruling on the merits of the claims, which we maintain are false and baseless.”
The lawsuit contradicts the global spirit company’s image as a leader in workplace diversity and inclusion; however, this is not the first time it has faced a lawsuit alleging racial discrimination. Eboni Major, a Black whiskey maker for Diageo’s Bulleit, also filed a lawsuit against the spirits group in April 2022. Diageo has received accolades for workplace diversity and is the anchor backer of Pronghorn, an initiative focused on boosting Black entrepreneurship in spirits.
Combs is often credited as one of the first entertainment figures to illustrate the power of celebrity backing to boost spirit sales. In 2007, Diageo and Combs formed a partnership to develop Diageo’s Cîroc, at the time a low-ranked vodka. After Combs took charge of the brand’s strategic marketing, Cîroc ascended to a top seller within a few years, growing from a 50,000-case-per-year vodka into nearly 2 million-per-year. It has since released several product variations, including ready-to-drink line CÎROC Vodka Spritz. In 2014 Combs formed a joint venture with Diageo and purchased DeLeón, a boutique high-end tequila brand that was distributed in 18 U.S. states at the time.
The dispute may shed some light on the potential drawbacks around celebrity backed brands, which the global spirits group relies on in several categories. The partnership between David Beckham and Diageo-owned Haig Club Whisky was terminated last month, and the scotch brand’s social media profiles have since been set to private. Shawn “Jay-Z” Carter and Bacardi also recently resolved a long legal battle.