Starbucks is facing a third lawsuit from Balmuccino, a company formerly led by a sister-in-law of TV personality Dr. Mehmet Oz, over allegations of intellectual property theft. Balmuccino claims Starbucks stole its concept for coffee-flavored lipstick and lip gloss, and filed its latest complaint on Friday in Manhattan federal court. This comes after two previous versions of the lawsuit were dismissed on procedural grounds, including one by a Seattle federal judge in July 2023. Starbucks had no immediate comments.
Balmuccino claims it started developing coffee-flavored lip balms in 2016 and presented its products to Starbucks during a meeting at the coffee chain’s New York office in October 2018. According to Balmuccino, it shared prototypes and confidential information with Starbucks during the meeting.
According to Balmuccino, Dr. Oz facilitated the 2018 meeting by connecting the company with Starbucks CEO Howard Schultz to discuss a potential partnership.
Balmuccino claims that Starbucks subsequently ‘stole’ its fully developed concept for coffee-flavored lip balms by launching its own ‘S’mores Frappuccino Sip Kit’ in April 2019, which included similar products. The Sip kit featured lipstick and lip gloss in four shades: Campfire Spark, Chocolicious Bliss, Graham Glam, and Marshmallow Glow. Balmuccino alleges that Starbucks profited from these kits without providing any compensation, and is now seeking unspecified damages, including both compensatory and punitive awards.
Balmuccino’s lawsuit is not too late because of a New York law that allows some plaintiffs to pause the time limit for filing a case. This happens when someone sues in the wrong court and the court says it can’t handle the case. This is what happened with Balmuccino, so the time limit was put on hold, allowing them to file the lawsuit again in the correct court.
Balmuccino first filed a lawsuit against Starbucks in Los Angeles in October 2019. The case was later transferred to the U.S. District Court for the Southern District of New York, where it is currently pending under case number 24-06214, Balmuccino LLC v. Starbucks Corp.
In a recent development, the coffee giant has ousted its CEO, Laxman Narasimhan, who is of Indian origin, just 18 months after he assumed leadership. Narasimhan has stepped down as the chief executive and from the company’s board “with immediate effect”, according to a statement from Starbucks on Tuesday.
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