Diageo PLC (LSE:DGE) is being sued by the American rapper, actor and record producer, Sean Combs, better known as Puff Daddy, P Diddy and Diddy.
Combs has accused the spirits maker of breaking the terms of their business partnership and neglecting the tequila brand they had bought together, saying the company had done so because he is black.
The lawsuit comes after years of partnership between the spirits company that owns Johnnie Walker, Guinness and Tanqueray and Combs, 53, with their joint DeLeón tequila brand.
The court filing alleges that Diageo has poured resources into two other tequilas, including Casamigos, a brand backed by George Clooney, the actor, that Diageo agreed to buy in 2017 for up to $1bn.
Combs said Diageo had limited the drink’s distribution to “urban” neighbourhoods.
Diageo denied the allegations and said it would defend itself “vigorously”.
“This is a business dispute and we are saddened that Mr Combs has chosen to recast this matter as anything other than that,” a spokesman for the company said. “Our steadfast commitment to diversity within our company and the communities we serve is something we take very seriously.