📈 69% of S&P 500 stocks beating the index - a historic record! Pick the best ones with AI.See top stocks

Bodum sues Starbucks for product disparagement over French press recall

Published 05/11/2019, 12:30 AM
© Reuters. FILE PHOTO: A Starbucks sign is show on one of the companies stores in Los Angeles, California
SBUX
-
SO
-

By Jonathan Stempel

NEW YORK (Reuters) - Bodum Holding AG sued Starbucks Corp (NASDAQ:SBUX) on Friday for alleged product disparagement in connection with the coffee company's recent U.S. and Canadian recall of 263,200 co-branded French presses made from recycled materials.

In a complaint filed in federal court in Manhattan, Bodum said Starbucks had no basis to "unilaterally" conduct the May 1 recall because the Bodum + Starbucks presses were not defective and met required specifications.

Bodum also accused Seattle-based Starbucks of creating the impression that Bodum French presses in general are defective, causing a media backlash and "significant brand damage" to the Lucerne, Switzerland-based company.

The lawsuit seeks to force Starbucks to pay all costs for the recall and pay damages to Bodum for hurting its reputation.

Starbucks believes Bodum's claims are without merit. In a statement, it said it recalled the French presses because of customer complaints, and stood by the decision because it took employee and customer safety "very seriously."

Bodum is among the best-known makers of French presses, and has sold them at Starbucks under a 2002 purchasing agreement.

People use the presses by adding ground beans and hot water to a pot and, after steeping, pushing down on a plunger to make coffee.

Starbucks said it recalled presses sold from November 2016 to January 2019 for about $20 each after receiving nine reports of broken plunger knobs, resulting in lacerations or punctures.

According to the complaint, Starbucks recalled the presses even though laboratory tests found no evidence of product or design defects, because it had become "particularly sensitive to recall issues" after paying large fines in an earlier recall.

Bodum also said Starbucks plans to expand the recall to Latin America, Europe, the Middle East and the Asia-Pacific region, an "unwarranted" action that is causing "unacceptable damage to the Bodum brand worldwide."

© Reuters. FILE PHOTO: A Starbucks sign is show on one of the companies stores in Los Angeles, California

The case is Bodum Holding AG et al v Starbucks Corp, U.S. District Court, Southern (NYSE:SO) District of New York, No. 19-04280.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.