Kytch, a start-up hired by McDonald’s to fix the chain’s broken Ice Cream machines is suing the company for $900 million. The start-up filed a lawsuit on March 1 after facing major hurdles from the fast-food giant.
McDonald’s is accused of sending emails to franchisees stating Kytch devices violated the machines’ warranties and compromised their confidential information. McDonald’s reportedly said that the devices posed a safety threat that could lead to “serious human injury.”
The start-up company provides RCs, maintenance, and other tools for ice cream machines for McDonald’s. It claims that the statements are false and defamatory and are seeking damages for false advertising and interfering with customer contracts.
O’Sullivan and Nelson, Kytch’s co-founders noted, “McDonald’s worked closely with its soft-serve machine manufacturer, Taylor Company, to spread false information about our company, to drive us out of the marketplace, and to line their own pockets.” Its lawsuit also accuses Taylor Company, McDonalds’ main provider of ice cream machines of unlawful activities.
