Diageo Breaks Up With Sean ‘Diddy’ Combs After Racism Claims (3)

Diageo North America Inc. said it is breaking off its business relationship with Sean “Diddy” Combs after the music mogul accused the world’s biggest spirits maker of racism in neglecting his liquor brands.

Diageo made the announcement in a Tuesday court filing responding to Combs’s lawsuit last month, which accused the company of racial bias in failing to adequately promote his Ciroc Vodka and DeLeón Tequila brands. Diageo asked the judge in the case to force Combs’s claims into arbitration or dismiss the case.

“Diageo is profoundly disappointed that Sean Combs, an entertainer and entrepreneur who has amassed nearly one ...