Virtual Dining Concepts (VDC), the ghost kitchen company behind MrBeast Burger, filed a countersuit against YouTuber Jimmy “MrBeast” Donaldson after he sued the company for serving low-quality products.
The YouTuber and Beast Investments are being sued by VDC for “failing to honor his contractual obligations, as well as intentional tortious interference,” according to Variety which obtained the lawsuit filed last Monday, August 7, in the Supreme Court of the State of New York for the County of New York.
The lawsuit is a retort by VDC after Donaldson sued the company in late July claiming that the company is damaging the reputation of his brand by serving subpar products and alleging the company of violating the contract between the partnership – including failing to pay royalties and registering his trademarks without permission.
Prior to VDC’s lawsuit, VDC Executive Vice President of Public Relations Amy Sadowsky released a press release to international news sites stating that Donaldson’s lawsuit was “riddled with false statements and inaccuracies” and an attempt by the YouTuber to “terminate his existing contractual obligations without cause” after attempting “to negotiate a new deal to serve his own monetary interests.”
As a response, the company filed a lawsuit with damages allegedly exceeding $100 million, “This case is about a social media celebrity who believes his fame means that his word does not matter, that the facts do not matter, and that he can renege and breach his contractual obligations without consequence, he is mistaken,” the lawsuit states.
The lawsuit claims that Donaldson breach the partnership’s agreements and interfered with business dealings that have damaged the reputation of the brand of MrBeast Burger and the company.
Other claims include Donaldson’s failure to comply with his contractual publicity and promotional obligations, failure to publicly support the brand, and undermining it by making “untruthful or misleading” statements.
“Donaldson’s baseless and unlawful disparagement had the intended effect: MrBeast Burger’s reputation was materially damaged if not destroyed, customers abandoned the Brand, Plaintiffs’ hard-won relationships with vendors, partners, and suppliers were shattered, causing damages to Plaintiffs that, according to the evidence and Donaldson’s own statements regarding the value of MrBeast Burger, are in the nine-figure range,” the lawsuit reads.
VDC is a ghost kitchen company co-founded by Planet Hollywood’s CEO Robert Earl and has featured several celebrity brands including Mariah Carey’s “Mariah’s Cookies” and Chef Buddy Valastro’s “Buddy V’s Cake Slice.”
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