Diageo settles racism dispute with Sean ‘Diddy’ Combs over investment

Diageo Plc has settled a lawsuit with Sean Combs after the music mogul sued the British drinks company, accusing it of underinvestment in brands he fronted.

Combs, known as Diddy, had accused the spirits company of racism in neglecting liquor brands Cîroc Vodka and DeLeón Tequila, but has now withdrawn his allegations, Diageo and Combs said Tuesday. Combs since November has been accused of sexual violence in four separate lawsuits.

Diageo will be the sole owner of DeLeón and will have no further business relationship with Combs. No financial terms of the settlement were disclosed.

The accusations of racism shook Diageo as they appeared to undermine its track record in diversity - a legacy of former Chief Executive Officer Ivan Menezes, who died in June.

Combs claimed in his suit that Diageo’s commitment to diversity in its business relationships was merely lip-service, and that it failed to adequately promote DeLeón, a tequila they co-owned. As evidence of bias, he pointed in his suit to the company’s $1 billion acquisition and marketing of the Casamigos tequila brand co-founded by actor George Clooney.