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On Tuesday, after the testimony of ex-hotel security guard Eddie Garcia, Diddy's former head of finance, Derek Ferguson, came on the court stand. According to CNN, Ferguson said that he worked for Combs from 1998 to 2017, and remained in the position of CFO at Bad Boy Entertainment from 1998 to 2012.
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Ferguson, who testified under a subpoena, shared details about his job role and various aspects of Diddy's enterprises. According to the Washington Post, during the cross-examination, the defense asked Ferguson about Combs' relationship with the spirits label, Diageo. The defense posed the question to elaborate on their theory that Combs faced unfair treatment due to his race.
For context, Diageo is one of the world's leading liquor giants, and according to the January 2024 CNBC report, the company owns more than 200 brands. The report also stated that Combs and Diageo collaborated in 2007 to promote French vodka Cîroc, and they also joined hands to purchase DeLeón tequila in partnership in 2013.
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According to CNBC in June 2023, Diddy sued the liquor giant in 2023 over alleged racial discrimination toward his brand. However, the lawsuit was settled in 2024. Ferguson, in his testimony, said that there was friction between Combs and Diageo over the issue of marketing and distribution, and the rapper felt that ads for collaborative spirits were only targeting minority and Black neighborhoods.
More about Diddy and Diageo's relationship
As mentioned earlier, Combs and Diageo entered into a partnership for the promotion of Cîroc, and they co-purchased DeLeón tequila in 2013. According to a June 1 report by CNBC, Combs filed a lawsuit against the liquor giant for allegedly racially discriminating against the labels he was associated with. The rapper claimed that Diageo typecast the two labels as “Black brands.”
Combs filed a lawsuit in the York court and claimed that the company marketed his brands as "urban" labels and hence reduced their appeal. He further claimed that Diageo had "sabotaged" his tequila label with poor packaging compared to other celebrity sublabels under the company. Combs also alleged that the distribution of his tequila label was limited.
As per the January 2024 report by Variety, the two had settled their issues while cutting their business ties. Combs also withdrew his lawsuit with prejudice. Thereafter, Diageo became the sole owner of Cîroc and DeLeón.
What more did the former financial head share in his testimony in the ongoing Diddy trial?
As per the Washington Post, Derek Ferguson was the first employee of the rapper who said that he never saw Combs be violent or break the law. During the cross-examination, he was asked if he had seen Combs committing crimes.
“Did you see anyone make the company stronger through threats of violence?” defense lawyer asked.
To which Ferguson replied in negative.
As per CNN, the former CFO of Combs' record label also said on the stand that taxes for the company were always done in a compliant manner. He also shared that Diddy's personal assistants and security guards were paid by the company.
During his testimony, Ferguson also praised Diddy for his hard work.
“I did learn a lot from him. He had a great business mind and I think he put his mind to something and set a really high aggressive goal and was not afraid of that goal and I think that’s something you can learn from that,” Ferguson said.
In the four weeks since the trial began on May 5, approximately two dozen witnesses have appeared on the court stand. The trial has reached a midway point, and many other witnesses are expected in the coming days.
