DEO - Diageo cuts ties with Sean Combs amid legal battle over vodka tequila partnership

2023-06-27 13:20:42 ET

Diageo ( NYSE: DEO ) announced in a court filing on Tuesday that the company is severing ties with Sean "Diddy" Combs after a 15-year-relationship ended in dueling accusations and a lawsuit. The news was delivered as part of Diageo's ( DEO ) motion to dismiss the Combs lawsuit against the company in which racial animus was alleged. Diageo ( DEO ) denied those claims and stated the lawsuit was an effort to extract additional billions from the company. Combs is accused of resorting to false and reckless allegations, including numerous defamatory and disparaging accusations.

"We are saddened that Mr. Combs has chosen to recast a business dispute as anything other than that and chosen to damage a productive and valued partnership," read part of a media statement provided to Seeking Alpha by Diageo ( DEO ).

Diageo ( DEO ) also said it believes strongly in the CIRÔC and DeLeón brands and remains committed to their success. The company noted that it funded the purchase of DeLeón for the joint venture with Combs and proceeded to invest more than $100M to grow the brand.

Shares of Diageo ( DEO ) were up 0.77% in afternoon trading on Tuesday.

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