Starbucks successfully defeated a lawsuit brought against it by Balmuccino LLC, a company claiming that the coffee giant stole its trade secrets to create the popular “S’mores Frappuccino” lip gloss. The lawsuit involved intriguing connections, including the involvement of a relative of renowned TV doctor Mehmet Oz, and it marked the second time the case has been dismissed on procedural grounds.
U.S. District Judge John Chun, presiding over the case in Seattle, ruled in favor of Starbucks, stating that Balmuccino waited too long to file the lawsuit. This dismissal on procedural grounds has compelled Balmuccino’s attorney, Eduardo Martorell, to announce their intentions to appeal the ruling and refile the case in New York. Martorell emphasized that Balmuccino is determined to pursue the matter and seek justice beyond procedural technicalities, holding Starbucks accountable for its alleged actions.
The dispute between Balmuccino and Starbucks traces back to the inception of Balmuccino’s line of coffee-flavored lip balms in 2016. According to Balmuccino’s lawsuit, its representatives had a meeting with Starbucks’ head of product development in 2017 to explore a potential partnership. This meeting, arranged by Starbucks CEO Howard Schultz and Mehmet Oz, who is also a former Republican U.S. Senate candidate, has familial ties to one of Balmuccino’s managing members.
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During this meeting, Balmuccino claims to have shared confidential information, including prototypes of its lip balms and supplier details, with Starbucks. The company alleged that Starbucks used this information to develop its “S’mores Frappuccino Sip Kit,” a collection of coffee-scented lipsticks and glosses celebrating the return of its iconic drink.
In response to these allegations, Balmuccino filed a lawsuit against Starbucks in California state court in 2019. However, the California court later ruled that it lacked jurisdiction over the coffee chain. Unfazed, Balmuccino filed a fresh complaint in Seattle federal court in October of the same year.
Judge Chun’s recent ruling hinged on the statute of limitations set forth by Washington state law. According to the judge, Balmuccino failed to initiate the lawsuit within the prescribed three-year period, which began at the latest when the company learned of Starbucks’ launch of the “S’mores Frappuccino Sip Kit” in April 2019.
The legal battle between the two parties continues to unfold, with Balmuccino expressing its determination to have its case heard on its merits. The company believes that Starbucks should be held accountable for its alleged use of confidential information and trade secrets in creating its lip gloss product line.
As the case moves forward, Starbucks has yet to release an official statement in response to the recent ruling. Their representatives did not immediately respond to media requests for comment on the decision.
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