MrBeast, real name Jimmy Donaldson, is being sued by Virtual Dining Concepts, the ghost kitchen behind his restaurant, MrBeast Buger. Virtual Dining Concepts (VDC) is suing Donaldson and his company, Beast Investments, for “failing to honor contractual obligations.” The damages are allegedly exceeding $100 million. The lawsuit was filed on August 7th with the Supreme Court of New York.
This is a countersuit to the lawsuit Donaldson filed against VDC on July 31st, 2023.
Donaldson, one of the biggest stars on YouTube, partnered with VDC in December 2020 to launch his virtual restaurant. MrBeast Burger virtually operated globally with over 1,700 locations, barring one physical location. Donaldson’s original suit alleges VDC offered poor quality food, which produced negative culinary reviews for his restaurant. Donaldson alleges VDC “caused material and irreparable harm to the MrBeast brand and reputation.” VDC argues that MrBeast Burger help “exponentially” grow his brand on YouTube.
VDC’s countersuit claims Donaldson breached the parties’ agreements and interfered in business dealings, causing the reputation damage. The suit goes on to claim Donaldson failed to comply with contractual publicity and promotional obligations, along with failed public support of the brand. VDC provided several examples of Donaldson disparaging the brand in tweets. Some of which appear to have been deleted.
Donaldson’s suit, filed last month, seeks to terminate the contract with VDC for the virtual restaurant deal. VDC claims Donaldson’s suit stems from a recent renegotiation attempt between the two parties. VDC claims the new deal would’ve served Donaldson’s own monetary interests and allowed him to terminate his existing contractual obligations without cause.
Donaldson’s representatives have not commented about the countersuit at this time.
