A judge urged MrBeast and his burger business partner to settle their legal battle to avoid airing “dirty laundry” — but paved the way for the case to go to trial.
At a hearing on Thursday, New York County Supreme Court Judge Jennifer Schecter appeared skeptical about the damages sustained by either side, both of which are suing the other. Despite that, she ruled that both cases could proceed.
VDC said it looked “forward to having our day in court.” MrBeast’s reps declined to comment.
YouTube’s top star, MrBeast (real name Jimmy Donaldson), launched MrBeast Burger, a largely delivery-only venture selling burgers and fried chicken sandwiches, with Virtual Dining Concepts in 2020. Donaldson hoped it would become the cornerstone of a food empire, but the partnership was plagued by tensions over undercooked orders and Donaldson’s demands for more control of the business.
In July 2023, Donaldson’s company sued VDC, portraying the YouTuber as a victim seeking to escape an unfair contract that had tarnished his reputation as a philanthropic, family-friendly entertainer. VDC fired back with its own lawsuit, saying Donaldson had walked away from a promising deal and failed to meet various contractual obligations, including appearances and promos.
A big issue for the judge was the level of damages claimed by both sides. She said the evidence presented by MrBeast about bad Yelp reviews over MrBeast Burger orders seemed “very compelling.” But she said she was “very skeptical” that they “would materially and irreparably harm the MrBeast brand under the circumstances.”
‘It’s not boring’
The judge took special interest in MrBeast’s argument that VDC owes him royalties over burger sales.
VDC says MrBeast’s camp instructed the company to reinvest his royalty share back into the business. MrBeast’s side says it’s entitled to royalties now that the partnership has fallen apart.
The judge urged the parties to think about seeking a business solution rather than a legal one, given the cost of fighting the case in court.
“If they can’t take each other anymore, they should be thinking about a buyout, and it may be costly, but at the end of the day, maybe that’s what these parties both should want,” she said.
The judge also admitted some fascination with the case involving the world’s biggest YouTuber and his ill-fated business venture.
“It’s not boring,” she said.
During the hour-and-a-half hearing, MrBeast’s lawyer, Steven Marenberg, alleged that the burger complaints harmed the YouTuber’s reputation.
He said the “systemic, deep” dissatisfaction with MrBeast Burger could “impact, irreparably,” the YouTuber’s brand.
Shawn Rabin, VDC’s lawyer, countered by claiming that MrBeast wanted to lower the value of the business so he could “buy it on the cheap” and take control of it.
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