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Business litigation results from cookie competitor claims

When a business feels threatened by another company, owners and operators may feel that the other company is participating in unfair practices. In some cases, a business may believe that the other company has infringed on intellectual property or committed other violations. These beliefs can often lead to business litigation.

Texas readers may be interested in a business lawsuit that was recently filed in another state. The issue is between Cheryl and Co., which sells Cheryl’s cookies, and the company’s former owner Cheryl Krueger, who now owns and operates C. Krueger’s. Krueger sold Cheryl’s in 2005 and recently began selling cookies again through her C. Krueger’s business. However, Cheryl’s claims that Krueger is infringing on its intellectual property by selling look-alike cookies with similar frosting, packaging and overall look of the cookies. Cheryl’s also claims that Krueger has enlisted former Cheryl’s workers to work for her new venture in violation of a noncompete agreement.

Kruegar claims that her noncompete agreement expired in 2014 and that many workers she hired from the former company had not signed such agreements. She also refutes that her cookies are look-alikes because they are much bigger in size and the majority of them do not have frosting. She also claims that the cookies use different ingredients and, as a result, are a “fundamentally different” product than Cheryl’s cookies. Kreuger has also filed a counterclaim against Cheryl and Co.

The business world is immensely competitive, and when business owners suspect that other companies have participated in wrongdoing to get ahead, it is understandable that they would want the situation addressed. Of course, accused companies also have the right to defend against such allegations. Texas company owners who are having to contend with such difficulties may want to gain more information on business litigation and their legal options.