Rapper, producer and entrepreneur Sean “Diddy” Combs sued Diageo Wednesday, saying the spirits company didn’t make promised investments in his vodka and tequila brands and treated them as inferior “urban” products.
The lawsuit, filed with the New York Supreme Court in Manhattan, says Diageo North America starved Combs’ Ciroc vodka and DeLeon tequila brands of resources even as it showered attention on other celebrity brands. Diageo bought actor George Clooney’s Casamigos tequila brand for $1 billion in 2017, for example.
Combs, who is Black, said Diageo leadership told him his race was one of the reasons it limited distribution to urban neighborhoods. He was also told that some Diageo leaders resented him for making too much money, according to the lawsuit.
“Cloaking itself in the language of diversity and equality is good for Diageo’s business, but it is a lie,” the lawsuit said. “While Diageo may conspicuously include images of its Black partners in advertising materials and press releases, its words only provide the illusion of inclusion.”
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 Ciroc.
In a statement, Diageo denied allegations of racism.
“This is a business dispute, and we are saddened that Mr. Combs has chosen to recast this matter as anything other than that,” the company said in a statement. “While we respect Mr. Combs as an artist and entrepreneur, his allegations lack merit, and we are confident the facts will show that he has been treated fairly.”
In the lawsuit, Combs said he intends to seek billions of dollars in damages in other legal proceedings against Diageo.
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Swedish buy now, pay later company Klarna is making its highly anticipated public debut on the New York Stock Exchange Wednesday, the latest in a run of high-profile initial public offerings this year. The offering priced at $40 Tuesday, above the forecasted range of $35 to $37 a share, valuing the company at more than $15 billion. The valuation easily makes Klarna one of the biggest IPOs so far in 2025, which has been one of the busier years for companies going public. Other popular IPOs so far this year include the design software company Figma and Circle Internet Group, which issues the USDC stablecoin..
Oracle co-founder Larry Ellison wrested the title of the world’s richest man from longtime holder Elon Musk early Wednesday as stock in his software giant rocketed more than a third in a stunning few minutes of trading. That is according to wealth tracker Bloomberg. A college dropout, the 81-year-old Ellison is now worth $393 billion, Bloomberg says, several billion more than Musk, who had been the world’s richest for four years. The switch in the ranking came after a blockbuster earnings report from Oracle. Forbes still has Musk as the richest, however, valuing his private businesses much higher.
