Meanwhile, Diageo has denied the accusations and called Combs' suit a “sham action.” In Tuesday's filing, which calls on the court to compel arbitration or dismiss Combs' complaint, Diageo accuses Combs of resorting to “false and reckless” allegations “in an effort to extract additional billions" from the company.
Diageo also said it was ending its brand partnerships with the music mogul — noting that the company had served the Combs parties a notice of intent to arbitrate breaches of the DeLeón agreement and a notice of termination for their Cîroc relationship. Combs’ relationship with Diageo dates to 2007, when the London-based company — which owns more than 200 brands, including Guinness beer and Tanqueray gin — approached Combs about Cîroc.
In Tuesday's filing, Diageo said that Combs has acquired nearly $1 billion dollars throughout their 15-year relationship. The company also argues that Combs did not act as an equal partner by, for example, not providing adequate funding to help DeLeón grow — stating that, outside a $1,000 contribution from Combs, Diageo “provided 100% of the funding" for the joint venture, which amounted to a total investment of $100 million.
The Associated Press reached out to attorneys representing Combs Wines and Spirits for statement on Tuesday. The AP also contacted attorneys representing Diageo for further comments.
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