Starbucks (SBUX.O) is facing a third lawsuit from Balmuccino, a company that accuses the coffee giant of stealing its concept for coffee-flavored lipstick and lip gloss. Balmuccino, whose leadership has included a sister-in-law of TV doctor Mehmet Oz, filed the complaint on Friday in Manhattan federal court. This latest filing follows two previous dismissals on procedural grounds by a Seattle federal judge, the most recent in July 2023.
Seattle-based Starbucks has not yet commented on the lawsuit.
Balmuccino claims it began developing coffee-flavored lip balms in 2016 and presented the concept during an October 2018 meeting at Starbucks’ New York office, where the company shared prototypes and other confidential information. The meeting was reportedly arranged by Dr. Oz, who contacted Starbucks Chief Executive Howard Schultz to suggest a potential joint venture.
Balmuccino alleges that Starbucks “stole” its fully developed concept and launched the “S’mores Frappuccino Sip Kit” in April 2019, which included lipstick and gloss in four shades: Campfire Spark, Chocolicious Bliss, Graham Glam, and Marshmallow Glow. The company asserts that Starbucks did not compensate it for selling the Sip Kits and is seeking unspecified compensatory and punitive damages.
Balmuccino argues that its lawsuit is not time-barred because New York law allows plaintiffs to toll statutes of limitation when they initially file in the wrong forum, as happened in this case when the court found it lacked jurisdiction. Balmuccino originally sued Starbucks in Los Angeles in October 2019. The current case is Balmuccino LLC v. Starbucks Corp., U.S. District Court, Southern District of New York, No. 24-06214.
