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Diddy's Brand Is Damaged—But Not Destroyed

"Because of Mr. Combs' fame and success, he is an easy target for anonymous accusers who lie without conscience or consequence for financial benefit. The New York Legislature surely did not intend or expect the Adult Survivors Act to be exploited by scammers. The public should be skeptical and not rush to accept these bogus allegations."
Cassie's decision to include Sean "Diddy" Combs' companies in her rape and physical abuse lawsuit against him could have lingering effects on the rap mogul's fortune, legal experts have warned.

On November 16, singer Cassie—whose real name is Cassandra Ventura—accused Combs of rape and physical abuse throughout their decade-long relationship. Cassie alleged that Combs—also known as "Puff Daddy," "Puffy, and "Brother Love"—used his industry connections to keep her from leaving him, describing the relationship as "a cycle of abuse, violence, and sex trafficking."

In the lawsuit, Cassie, 37, also accused Combs, 54, of introducing her to an "ostentatious, fast-paced and drug-fueled lifestyle." This allegedly included forced sexual encounters with male prostitutes, threats and beatings.

Ahead of the settlement, Combs' attorney, Ben Brafman, told Newsweek: "Mr. Combs vehemently denies these offensive and outrageous allegations.

"For the past six months, Mr. Combs has been subjected to Ms. Ventura's persistent demand of $30 million, under the threat of writing a damaging book about their relationship, which was unequivocally rejected as blatant blackmail.

"Despite withdrawing her initial threat, Ms. Ventura has now resorted to filing a lawsuit riddled with baseless and outrageous lies, aiming to tarnish Mr. Combs' reputation and seeking a pay day."

Douglas Wigdor, a lawyer for Cassie, countered that the parties had spoken before the suit was filed, adding: "Mr. Combs offered Ms. Ventura eight figures to silence her and prevent the filing of this lawsuit. She rejected his efforts."

While the swift settlement of the lawsuit has spared the parties a courtroom battle, legal experts have weighed in on the fact that Cassie named Combs' companies in her filing—including Bad Boy Records, Epic Records, Bad Boy Entertainment and Combs Enterprises. Cassie was signed to Bad Boy Records.

In light of this move, a video has gone viral on social media of Symone Redwine, an attorney and law professor at Texas Southern University School of Law, weighing in on the matter during a recent appearance on The Pour Horsemen Podcast.

   
 

"They didn't sue just Diddy, they sued his corporations," she says in the clip, which has been viewed more than 5.5 million times on X, formerly Twitter. "And they sued his corporations in her capacity as an employee. When you do that, it triggers commercial liability insurance and it triggers another policy called directors and officers. And we know he's a director of these company as the CEO.

"So now you've got two policies. What happens is then that it takes away Puffy's ability to settle. It's not his choice [anymore]."

Redwine added that "it's no different than if you hit somebody with your car, let's say you have State Farm [insurance], State Farm gets to decide to settle, not you. You could say, 'I didn't run the stop sign. That's not true, they're lying.' If State Farm says, 'We don't care, we did our investigation, we're settling,' that's it.

"That's what happened here. So because they added those claims, the corporate insurance carrier got to read over it and say, 'Oh hell no, we're giving her the money.'"
 

Combs' Reputation

In the clip, Redwine added that Combs' reputation is "done. And if he wants to be able to leave anything to his children, he needs to walk away from all of these corporations... More than likely, what will happen is those insurance companies they have the ability to say, 'We won't renew your policy if he continues to be a director or officer.'"

The video footage circulated as it was announced this week that Combs has temporarily stepped aside as chairman of Revolt, the TV network he co-founded a decade ago.

"While Mr. Combs has previously had no operational or day-to-day role in the business, this decision helps to ensure that Revolt remains steadfastly focused on our mission to create meaningful content for the culture and amplify the voices of all Black people throughout this country and the African diaspora," read a statement from Revolt that was posted on social media.
 

Sean Combs and Cassie
Sean Combs and then-partner Cassie on May 7, 2018, in New York City. The stars' relationship ended in 2018 after a decade together.DIMITRIOS KAMBOURIS/GETTY IMAGES


Capital Preparatory Harlem Charter School, which Combs opened in New York City in 2016, has ended its partnership with Combs in light of the allegations, it was announced on Tuesday.

"Following a comprehensive evaluation, a decision has been made to end the partnership between Capital Preparatory Schools and Sean Combs," read a statement from Dr. Steve Perry, the founder of Capital Preparatory Schools. "While this decision was not made lightly, we firmly believe it is in the best interest of our organization's health and future."

Spirit maker Diageo—which is already locked in a series of lawsuits with Combs amid accusations from the star of racial discrimination—cited Cassie's allegations to boost its efforts in barring him from serving as the face of DeLeón tequila.

Diageo said in a filing before Cassie's settlement that the "public and disturbing accusations" against Combs risked "devastating and permanent damage" to DeLeón tequila, which the music mogul had run in a joint venture for a decade. Combs also fronted Diageo's Cîroc vodka for several years.
 

Legal Obligation

New York-based discrimination attorney Andrew Lieb, of Lieb at Law, told Newsweek that including the entrepreneur's businesses was a legal obligation.

"The suit was filed under the Adult Survivors Act, which makes an employer liable for sexual abuse, as well as the perpetrator, so long as the employer had some responsibility or control over the abuser or victim," Lieb explained. "As such, it would constitute legal malpractice to not have sued the companies as well as Diddy (without client waiver).

"Regardless, the theory that including the companies somehow triggers the commercial liability insurance is far stretched because most insurance includes carve outs for sexual assault and discrimination, which is what this case is all about unless a special endorsement was purchased for just this type of suit. Moreover, Diddy is a billionaire so Cassie doesn't need to be paid by insurance as he certainly won't become judgment-proof from this lawsuit by a far margin."

Lieb also told Newsweek that the suggestion Combs' hands were tied by his companies being named in the lawsuit is "not a clear statement. Yes, naming his organizations removes his ability to force the organizations to settle for themselves, but it certainly doesn't stop him from offering enough money for a global settlement.

"Moreover, while it's almost certain that the organizations would cross claim for indemnification against him in such a lawsuit, it is certain that he could offer enough money to get releases for both himself and the organizations in any settlement and only a foolish organization, breaking its fiduciary duty to shareholders, wouldn't take such a release in a heartbeat."

While Combs denied all wrongdoing after the allegations were leveled against him, Redwine asserted in the viral video that his reputation was still gravely affected. Lieb told Newsweek that he agrees—but only to an extent.

"Overall, this lawsuit hurts Diddy's brand, business dealings, and wallet. However, he will plow through it and emerge just fine on the other side after paying Cassie her due," Lieb said.

On announcing that Cassie's lawsuit against him had been settled, Combs said in a statement: "We have decided to resolve this matter amicably. I wish Cassie and her family all the best. Love."

In her own statement on the settlement, Cassie said: "I have decided to resolve this matter amicably on terms that I have some level of control. I want to thank my family, fans, and lawyers for their unwavering support."

Brafman added: "Just so we're clear, a decision to settle a lawsuit, especially in 2023, is in no way an admission of wrongdoing. Mr. Combs' decision to settle the lawsuit does not in any way undermine his flat-out denial of the claims. He is happy they got to a mutual settlement and wishes Ms. Ventura the best."
 

Other Lawsuits

Following Cassie's lawsuit, two more women stepped forward with suits of their own, in which they accused Combs of sexual assault in the early 1990s under the New York Adult Survivors Act, which expired late last month.

This was the last chance for sexual assault survivors to add to the more than 2,500 lawsuits filed under the act, closing a one-year window that assisted in holding perpetrators of abuse accountable.

The act was signed into law by Governor Kathy Hochul in May 2022 and gave anyone who was 18 years of age or older at the time of an alleged offense a one-year window—from November 24, 2022, to November 23, 2023—to file a lawsuit against their alleged abusers and the institutions that enabled them. This was regardless of the statute of limitations.

A surge of lawsuits against well-known figures from various industries were filed in the final days before the window closed, including against Combs.

"These are fabricated claims falsely alleging misconduct from over 30 years ago and filed at the last minute. This is nothing but a money grab," a Combs representative told Newsweek.

"Because of Mr. Combs' fame and success, he is an easy target for anonymous accusers who lie without conscience or consequence for financial benefit. The New York Legislature surely did not intend or expect the Adult Survivors Act to be exploited by scammers. The public should be skeptical and not rush to accept these bogus allegations."



Author: Editors Desk

Source: Newsweek:

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