At the end of 2019, Coty Inc. (“Coty”) expanded its brand portfolio by closing a notable $600 million deal for a majority stake in reality star Kylie Jenner’s young cosmetics company, King Kylie LLC (d/b/a Kylie Cosmetics). The purchase placed the valuation of the Kylie Cosmetics at $1.2 billion. Drama soon followed the acquisition as reports questioning Ms. Jenner’s net worth (and consequently, the value of her cosmetics empire) surfaced in May 2020, overshadowing Coty’s launch of the Kylie Skin beauty line in Europe. On June 29, 2020, Coty announced a 21% investment in KKW Beauty (Ms. Jenner’s sister’s company) for $200 million. Prompted by these deals, the manufacturer behind both Kylie Cosmetics and KKW, Seed Beauty, LLC, filed two trade secret lawsuits in Superior Court in Los Angeles, California.
Continue Reading Not so Pretty: Cosmetic Company Acquisitions Lead to Contentious Trade Secret Spat

From court closures and the way judges conduct appearances and trials to the expected wave of lawsuits across a multitude of areas and industries, the COVID-19 outbreak is having a notable impact in the litigation space—and is expected to for quite some time.

To help navigate the litigation landscape, we are kicking off a webinar series that will take a
Continue Reading Post-Pandemic Litigation Webinar Series

As we previously reported, CBD company Healthcare Resources Management Group, LLC (Healthcare Resources) filed an action in the US District Court for the Southern District of Florida claiming trade secret misappropriation by Medterra CBD and EcoNatura, and alleging that Medterra CBD and EcoNatura worked together to manufacture and sell a CBD cream using Healthcare Resources’ proprietary formula. On February 18, 2020, the defendants moved to dismiss the case on the grounds that Healthcare Resource failed to allege that it had provided or that Medterra had otherwise acquired any proprietary information. Healthcare Resources responded arguing that its trade secret claim is legitimate so long as (1) there was improper use of proprietary information; and (2) that use was enabled by a party who had a duty to guard and limit the use of such proprietary information.  The case has now been dismissed, but not for any of the reasons the parties briefed. Rather, in a May 21, 2020, order, Judge Donald Middlebrooks dismissed the suit without prejudice for failing to secure counsel to represent it in the case and denied Healthcare Resources’ pro se request for additional time to obtain new counsel.
Continue Reading No Counsel, No Lawsuit: Federal Court Tosses CBD Trade Secret Case

As we previously reported, on February 18, 2020, Medterra CBD (“Medterra”) filed a motion to dismiss a lawsuit alleging that it had misappropriated Healthcare Resources Management Group LLC’s (“Healthcare Resources”) proprietary formula for a CBD cream aimed at treating pain. In its motion, Medterra argued that Healthcare Resources failed to allege that it had provided or that Medterra had otherwise acquired any proprietary information. Additionally, Medterra claims that even if Healthcare Resources could establish that it had provided its propriety CBD cream formula to Medterra, Healthcare Resources did not take adequate steps to protect its trade secret by mandating Medterra sign a non-disclosure agreement.
Continue Reading CBD Cream Manufacturer Responds to Motion to Dismiss in Trade Secret Litigation

On February 18, 2020, Medterra CBD filed a motion to dismiss a lawsuit alleging that it had misappropriated Healthcare Resources Management Group LLC’s (“Healthcare Resource”) proprietary formula for a CBD cream aimed at treating pain. In its motion, Medterra argued that Healthcare Resource failed to allege that it had provided or that Medterra had otherwise acquired any proprietary information. Additionally, Medterra claims that even if Healthcare Resource could establish that it had provided its propriety CBD cream formula to Medterra, Healthcare Resource did not take adequate steps to protect its trade secret by mandating Medterra sign a non-disclosure agreement.
Continue Reading CBD Company Files Motion to Dismiss in Trade Secret Dispute