: Diageo’s stock falls toward 7-month low in wake of WSJ report of being sued by Sean ‘Diddy’ Combs

The U.S.-listed shares of Diageo PLC DEOUK:DGE slid 1.4% toward a 7-month low in midday trading Wednesday, after The Wall Street Journal reported that Sean “Diddy” Combs sued the U.K.-based spirits, wine and beer company for neglecting the DeLeón tequila brand they co-won. Music mogul Combs also accused Jack Daniels, Smirnoff and Guinness brand parent of racial discrimination, the WSJ report said, saying in a court filing that Diageo had referred to DeLeón as a Black brand. The court filing says that Diageo has neglected DeLeón while spending significant resources to market other tequilas, including the George Clooney-backed Casamigos which Diageo bought in 2017 for up to $1 billion, the WSJ report said. Diageo’s stock has lost 5.8% year to date, while shares of rival Constellation Brands Inc. have gained 3.6% and the S&P 500 has advanced 8.7%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.