, , , , , ,

Booze Giant Diageo Slams Diddy’s Racism Accusations, Calls Lawsuit Over Tequila Brand A ‘Sham’


Lawyers for alcohol giant Diageo are demanding that a judge toss out a lawsuit from Sean “Diddy” Combs that accuses the company of racism, calling it “false and reckless” and driven by an effort to “extract additional billions” from the company.


Combs sued in May, claiming Diageo breached his partnership deal for DeLeon Tequila by failing to properly support the brand. But he went a lot further than that, also leveling accusations of racism and claiming Diageo had treated his product line “worse than others because he is Black.”


In the company’s first response to the lawsuit on Tuesday (June 27), Diageo’s lawyers didn’t exactly hold back, either. They called the Diddy’s lawsuit a “bad faith, sham action” filed by a star who had “amassed nearly one billion dollars” from their partnership but now wanted to “extract” billions more.


“These allegations are nothing more than opportunistic attempts to garner press attention and distract the court from the fact that plaintiff’s breach-of-contract claim is entirely without merit,” the company’s attorneys wrote. “Diageo categorically denies these accusations.”


In a statement on Tuesday, a spokeswoman for Diageo echoed the message of the company’s legal filing — and said Diageo had permanently cut ties with the rapper.


“Mr. Combs’ bad-faith actions have clearly breached his contracts and left us no choice but to move to dismiss his baseless complaint and end our business relationship,” the company wrote. “Mr. Combs has repeatedly undermined our partnerships and threatened to publicly defame Diageo if we did not meet his unreasonable financial demands.”


In his lawsuit, filed on May 31, attorneys for Diddy’s Combs Wines and Spirits claimed that Diageo had “typecast” his DeLeon as a “Black brand” that could only be sold to “urban” consumers, harming its sales and leaving it lagging behind competing Diageo brands like Casamigos and Don Julio.


“Cloaking itself in the language of diversity and equality is good for Diageo’s business, but it is a lie,” Combs’ lawyers wrote. “While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion.”


But in Tuesday’s response, Diageo said those bombastic allegations were just a distraction from a run-of-the-mill business dispute that should have been handled under a binding arbitration agreement that both sides signed. They asked the judge to either dismiss the case or order that it be resolved through that private arbitration process.


“Without its inflammatory rhetoric and false accusations, the complaint is nothing but a garden-variety, and eminently arbitrable, suit alleging breach of contract,” Diageo wrote.


And when it comes to that “garden variety” business dispute, Diageo says it was Combs who was clearly in the wrong. The company claims he was “an unreliable and untrustworthy business partner” who failed to provide sufficient support to help DeLeon thrive, while Diageo supplied over $100 million for the project.


“Unwilling or unable to provide funding for the mutual benefit of the parties and the DeLeón brand, in mid-2020 Combs began to issue threats to damage the brand and defame Diageo and its executives and employees by publicly claiming that DeLeón’s failure to thrive was due to a racial animus against him,” Diageo’s lawyers wrote.


In a statement to Billboard on Tuesday, Combs’ attorney John C. Hueston​ sharply criticized Diageo’s claims that it was terminating its partnership with the star, saying it was akin to “firing a whistleblower who calls out racism.”


“Over the years, he has repeatedly raised concerns as senior executives uttered racially insensitive comments and made biased decisions based on that point of view,” Hueston said. “Diageo even acknowledged the problem by agreeing in his contract to treat DeLeon the same way it treated their other tequila brands. He brought the lawsuit to force them to live up to that contract, and instead they respond by trying to get rid of him. This lawsuit and Mr. Combs are not going away.”

https://www.billboard.com/business/legal/diageo-slams-diddy-racism-accusations-lawsuit-tequila-brand-1235362742/


December 2024
M T W T F S S
 1
2345678
9101112131415
16171819202122
23242526272829
3031  

About Us

Welcome to encircle News! We are a cutting-edge technology news company that is dedicated to bringing you the latest and greatest in everything tech. From automobiles to drones, software to hardware, we’ve got you covered.

At encircle News, we believe that technology is more than just a tool, it’s a way of life. And we’re here to help you stay on top of all the latest trends and developments in this ever-evolving field. We know that technology is constantly changing, and that can be overwhelming, but we’re here to make it easy for you to keep up.

We’re a team of tech enthusiasts who are passionate about everything tech and love to share our knowledge with others. We believe that technology should be accessible to everyone, and we’re here to make sure it is. Our mission is to provide you with fun, engaging, and informative content that helps you to understand and embrace the latest technologies.

From the newest cars on the road to the latest drones taking to the skies, we’ve got you covered. We also dive deep into the world of software and hardware, bringing you the latest updates on everything from operating systems to processors.

So whether you’re a tech enthusiast, a business professional, or just someone who wants to stay up-to-date on the latest advancements in technology, encircle News is the place for you. Join us on this exciting journey and be a part of shaping the future.

Podcasts

TWiT 1011: The Year in Review – A Look at the Top Stories of 2024 This Week in Tech (Audio)

What's behind the tech industry's mass layoffs in 2024? : NPR Rabbit R1 AI Assistant: Price, Specs, Release Date | WIRED Stealing everything you've ever typed or viewed on your own Windows PC is now possible with two lines of code — inside the Copilot+ Recall disaster. Microsoft delays Recall after security concerns, and asks Windows Insiders for help The Qualcomm Snapdragon X Architecture Deep Dive: Getting To Know Oryon and Adreno X1 Elon Musk: First Human Receives Neuralink Brain Chip Apple hit with €1.8bn fine for breaking EU law over music streaming Bluesky emerges The hidden high cost of return-to-office mandates Apple's Car Was Doomed by Its Lofty Ambitions to Outdo Tesla SpaceX pulls off unprecedented feat, grabs descending rocket with mechanical arms U.S. versus Apple: A first reaction Google Says It Won't Force Gemini on Partners in Antitrust Remedy Proposal U.S. Accuses Chinese Hackers of Targeting Critical Infrastructure in America U.S. Agency Warns Employees About Phone Use Amid Ongoing China Hack AT&T says criminals stole phone records of 'nearly all' customers in new data breach National Public Data confirms breach exposing Social Security numbers Schools Want to Ban Phones. Parents Say No. New York passes legislation that would ban 'addictive' social media algorithms for kids GPT-4o (omni) + new "Her"-style AI assistant (it's nuts) Google emissions jump nearly 50% over five years as AI use surges Trump proposes strategic national crypto stockpile at Bitcoin Conference Ten additional US states join DOJ antitrust lawsuit looking to break up Live Nation and TicketmasterThe Internet Archive just lost its appeal over ebook lending Hezbollah Pagers Explode in Apparent Attack Across Lebanon OpenAI raises $6.6 billion in largest VC round ever Painting by A.I.-Powered Robot Sells for $1.1 Million Netflix's Live Mike Tyson Vs. Jake Paul Fight Battling Sound & Streaming Glitches In Lead-Up To Main Event Infowars Sale to The Onion Rejected by Federal Bankruptcy Judge Supreme Court agrees to hear challenge to TikTok ban So You Want to Solve the NJ Drone Mystery? Our Expert Has Some Ideas Beeper's push for iMessage on Android is really over The Quiet Death of Ello's Big Dreams Japan finally ends mandatory form submission on floppy disks We'll Miss You: Pioneering instant messaging program ICQ is finally shutting down after nearly 30 years Spotify is going to break every Car Thing gadget it ever sold Game Informer to Shut Down After 33 Years In Memoriam Host: Leo Laporte Guests: Fr. Robert Ballecer, SJ, Richard Campbell, and Mikah Sargent Download or subscribe to This Week in Tech at https://twit.tv/shows/this-week-in-tech Get episodes ad-free with Club TWiT at https://twit.tv/clubtwit Sponsor: bitwarden.com/twit
  1. TWiT 1011: The Year in Review – A Look at the Top Stories of 2024
  2. TWiT 1010: The Densest State in the US – TikTok Ban, Drones Over Jersey, GM Quits Robotaxis
  3. TWiT 1009: Andy Giveth & Bill Taketh Away – Trump's Tech Titans, Crypto Boom, TikTok's US Ban, Intel CEO Exits
  4. TWiT 1008: Internet Legal – Australia's Social Media Ban for Kids, Smart Home Nightmare, Bluesky's Ascent
  5. TWiT 1007: All the Hotdogs in the World – China's "Salt Typhoon" Hack, Google on the Chopping Block, Recall AI