London-based spirits company Diageo and rapper Sean Combs, popularly known as Diddy have opted for an out-of-court settlement in the legal dispute over their Tequila venture.
In a statement, Diageo said that the settlement will see Diddy withdraw the suit against the company.
The settlement will also see Diageo take full ownership of the DeLeón tequila brand which the rapper partly owned.
"Sean Combs and Diageo have now agreed to resolve all disputes between them. Mr. Combs has withdrawn all of his allegations about Diageo and will voluntarily dismiss his lawsuits against Diageo with prejudice.
"Diageo and Mr. Combs have no ongoing business relationship, either with respect to Cîroc vodka or DeLeón tequila, which Diageo now solely owns," the joint statement reads.
Diddy had in May last year sued Diageo for allegedly failing to honour their joint venture agreement for DeLeón. The two sides acquired the tequila brand in 2014.
Diageo and Diddy started working together in 2007 when the company hired him to promote its Cîroc vodka brand.
In his suit, he alleged that the company didn’t make promised investments in the two brands and treated them as inferior products.
According to NBC News, Diddy in his court filings allegedly accused the company of racism.
He alleged that the company's leadership told him race was part of the reason the drink's distribution was limited to urban neighbourhoods.
He also accused some company leaders of resenting him for making too much money.
Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits and beer categories.
