US startup Kytch has filed a $900 million lawsuit against the fast-food chain, McDonald’s for the latter’s unfair claims that had vicariously affected the company. Kytch had worked to invent and sell a device that was meant to fix the ice cream machines in the McDonald’s franchise. However, in the course of the evolution of the Kytch solution, McDonald’s pulled the plug and terminated the arrangement. The Kytch legal complaint against McDonald’s was filed a few days back and Kytch is accusing the company of false advertising and tortious interference in its contracts with customers. The Kytch co-founders are therefore asking for $900 million in damages for the stated infringements.
The complaint relates to Kytch’s phone-sized gadget which was designed to be installed inside McDonald’s ice cream machines. Since 2019 when the Kytch devices started to be installed in McDonald’s franchises, the device was able to help owners of McDonald’s ice cream machines remotely monitor and troubleshoot their devices. But a November 2020 email from McDonald’s to its franchisees directed them to immediately remove the Kytch device from their ice cream machines.
McDonald’s had stated that the Kytch device violated the ice cream machine’s warranties and intercepted their confidential information. McDonald’s also alleged that the Kytch device posed a safety threat that could lead to serious human injury. Kytch insists that these claims were false and defamatory.
Kytch also stated pointed to an alleged demarketing campaign which also led to McDonald’s promoting a new ice cream machine built by another company and offering similar features as the Kytch’s device. McDonald’s latest lawsuit is not the first by Kytch, as the company had also sued McDonald’s and others for allegedly stealing its trade secrets.
McDonald’s says it has committed no crime and the Kytch claims were meritless. It remains to be seen how the case pans out when the legal fireworks begin.
RELATED:
- Sony has sold over 10 million PlayStation 5 consoles
- Xbox Wireless Controller Aqua Shift Special Edition has all the blue you want
- This third-party PS5 controller is pretty expensive but comes with extra buttons
- Alleged Xbox Stream Box prototype images and features leaked online
(source)
