Startup sues McDonald's for $900 million; claims food chain destroyed their business & reputation

Monday, 7th March 2022

A startup - Kytch, has sued an American multinational fast food corporation - McDonald's, for $900 million. As per the startup's claims, it built a special device to fix the ice cream machines of the international food outlet. The startup filed a lawsuit on March 1, as per which it has accused McDonald's of sending messages via emails to the franchisees, stating that Kytch's built devices are violating the warranties of the machine. McDonald also stated that the startup's device is intercepting their confidential information and posing a causing a safety threat, which can further lead to "severe" human injuries. On the other hand, Kytch has dismissed all the claims made by McDonald's, calling them defamatory and false. The founders of Kytch - Melissa Nelson and Jeremy O'Sullivan, are seeking compensation worth $900 million from McDonald's for damaging their reputation. Not only this, but the startup has also accused McDonald's of promoting false advertisement and intervening in Kytch's contracts with its customers, according to the information shared in the lawsuit. Kytch's founders stated, "McDonald's had worked closely with its soft-serve machine manufacturer - Taylor Company, in order to spreading false information about our company, to drive us out of the marketplace, and to line their own pockets". In response to the lawsuit, McDonald's, in its statement, cites, "We owes it to our consumers, crew, & franchisees to maintain our - rigorous safety standards and work with thoroughly vetted suppliers in that pursuit. Kytch's claims are meritless, & we will respond to the complaint accordingly." McDonald's further noted that in the lawsuit, the safety certificates mentioned by the startup do not meet the requirements of the international food chain. The food chain authorities noted that they earlier warned Kytch about the likeability of getting the crew or Maintenance staff being injured. Meanwhile, the founders of Kytch have claimed that the food chain firm has destroyed their image as well as business, which cannot be "undo". The officials then stated, "If their task was to destroy Kytch, they succeeded. What has blown up in their face is this - "massive trail" of really damning proofs of all the laws they've broken."

Monika Walker

Monika Walker is an experienced journalist specializing in global political developments and international relations. With a keen eye for accuracy and analysis, Monika has been reporting for over a decade, bringing stories to light that matter to readers around the world. She holds a degree in International Journalism and is passionate about giving a voice to underrepresented communities through factual reporting.