Starbucks is sued again for alleged stealing concept for coffee-flavored lipstick

Balmuccino, a company whose leaders have included a sister-in-law of TV personality Dr. Mehmet Oz, filed a new lawsuit against Starbucks in Manhattan federal court on Friday. This comes after a Seattle judge dismissed an earlier version of the case in July 2023, marking the second dismissal on procedural grounds.

Seattle-based Starbucks has yet to comment on the filing.

Balmuccino claims that it started developing coffee-flavored lip balms in 2016 and presented its concept to Starbucks during a meeting in the company's New York office in October 2018. At the meeting, the Los Angeles-based company allegedly shared prototypes and confidential information. According to Balmuccino, Dr. Oz facilitated this meeting by reaching out to Starbucks' then-CEO Howard Schultz to propose a potential collaboration.

Balmuccino accuses Starbucks of "stealing" its fully developed idea when it launched the "S'mores Frappuccino Sip Kit" in April 2019. The kit featured lipstick and lip gloss in four shades: Campfire Spark, Chocolicious Bliss, Graham Glam, and Marshmallow Glow. The company alleges that Starbucks did not compensate it for the sale of these Sip Kits and is now seeking both compensatory and punitive damages.

Balmuccino argues that its lawsuit is still valid because New York law allows plaintiffs to pause the statute of limitations when they initially file in the wrong jurisdiction and a court subsequently rules it lacks jurisdiction. The company had originally sued Starbucks in Los Angeles in October 2019.

The case, Balmuccino LLC v. Starbucks Corp., is being heard in the U.S. District Court for the Southern District of New York, under case number 24-06214.