Sean ‘Diddy’ Combs Wins Round in Diversity Bout With Diageo (1)

Music mogul Sean “Diddy” Combs racked up an early win in his lawsuit against a Diageo Plc unit alleging that the liquor company pays lip service to diversity while treating Black entrepreneurs worse behind the scenes.

Judge Joel M. Cohen of the Supreme Court of New York for the County of New York denied Thursday Diageo’s motion to dismiss the lawsuit and its motion to force the case into arbitration.

Combs will now be able to engage in “broad discovery” aimed at uncovering evidence that the company didn’t support Combs’ liquor brands—Ciroc Vodka and DeLeón Tequila—in the same manner that it support its other brands, according to John Hueston, Combs’ attorney.

“This case has always been about getting fair and equal treatment,” Hueston said in a statement. “Today’s decision is an important step in the right direction. Diageo tried to end this action. Today the judge soundly rejected that effort.”

Diageo said in a statement, “While we are disappointed with today’s procedural decision, it is important to underscore that this is not a ruling on the merits of the claims, which we maintain are false and baseless.”

Combs was present in the court for today’s ruling, and will continue to attend in the future, Hueston said. “I always tell my clients to attend the court hearings because that sends a message to the judge, the law clerks and the public that they really do care, and it’s not just another piece of litigation.”

According to Hueston, Cohen said from the bench that the parties had clearly carved out the right to go to court for injunctive relief as opposed to arbitration.

The judge also rejected Diageo’s argument that Combs’ lawsuit was an action for damages dressed up as an action for injunctive relief, Hueston said.

The judge found that Combs had made appropriate claims concerning issues that needed to be addressed by way of injunctive relief, Hueston said.

Hueston Hennigan LLP represents Combs. Cadwalader, Wickersham & Taft LLP represents Diageo North America Inc.

The case is Combs Wines and Spirits LLC v. Diageo North America Inc., N.Y. Sup. Ct., No. 652517/2023, 9/7/23.