VDC sued after it was hit with a suit last month from the YouTube star’s Beast Investments alleging that the ghost kitchen company “tarnished” Donaldson’s reputation with bad food and poor customer service. It was accused of focusing on rapidly expanding the business as a “way to pitch the virtual restaurant model to other celebrities,” which led to “low quality products to customers that are delivered late, in unbranded packaging.
“For example, Donaldson latched onto various complaints about the burgers themselves as a breach of contract—it was not,” states the complaint, which notes that bad reviews are customary for any restaurant and that the “overwhelming majority of customers were highly satisfied.” Responding to the allegations, VDC says the trademark applications were for MrBeast Burger and were “therefore jointly owned by the parties.” The company argues that Donaldson “willfully failed to finalize and blocked the necessary corporate paperwork to create” the company that would be assigned the chain’s trademarks. Additionally, it claims that it gave the YouTuber’s his shares last year.
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