MrBeast faces $100M lawsuit over contract breach by ghost kitchen company

YouTube star MrBeast, whose real name is Jimmy Donaldson, is facing a lawsuit from Virtual Dining Concepts (VDC) and its subsidiary Celebrity Virtual Dining. The suit alleges that Donaldson failed to meet his contractual obligations and made disparaging comments about MrBeast Burger and VDC, causing irreparable harm. VDC claims that Donaldson's statements damaged the reputation of the restaurant and company, resulting in significant financial losses.

In response to the lawsuit, Donaldson had previously sued VDC, seeking to end their partnership due to alleged issues with the quality of the products and delivery. He also requested undisclosed monetary damages. The current lawsuit filed by VDC comes just one week after Donaldson's lawsuit.

Donaldson, known for his popular YouTube channel with 174 million subscribers, opened MrBeast Burger in December 2020 in partnership with VDC. The agreement stated that VDC would run the delivery-only business using Donaldson's name and likeness for promotion. The restaurant quickly gained success and expanded to 1,700 virtual locations in 2022.

However, Donaldson and VDC differ on who was responsible for the rapid expansion and the subsequent decline in quality. Donaldson claims there are thousands of negative reviews online, while VDC highlights positive customer ratings on Uber Eats and Doordash.

The dispute escalated in June when Donaldson hinted on Twitter that he was moving on from MrBeast Burger. He cited difficulties in ensuring order quality while working with numerous restaurants.

Both parties are now engaged in a legal battle, with VDC seeking damages exceeding $100 million. Donaldson's representative has not yet commented on the matter.

As the most-subscribed individual user on YouTube, MrBeast's influence and popularity have made this lawsuit a high-profile case. It remains to be seen how the legal proceedings will unfold and what the outcome will be for both parties involved.


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