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

By Jonathan Stempel

NEW YORK (Reuters) - Starbucks has been sued for a third time by a company that accused the coffee chain of stealing its concept for coffee-flavored lipstick and lip gloss.

Balmuccino, whose leaders have included a sister-in-law of TV doctor Mehmet Oz, filed its complaint on Friday in Manhattan federal court.

The filing followed a Seattle federal judge's July 2023 dismissal of an earlier version of the lawsuit on procedural grounds, the second such dismissal.

Starbucks, based in Seattle, had no immediate comment.

Balmuccino said it began developing coffee-flavored lip balms in 2016 and pitched them at an October 2018 meeting in Starbucks' New York office, where it provided prototypes and other confidential information.

The Los Angeles-based company said Dr. Oz had brokered the meeting, when he contacted Starbucks Chief Executive Howard Schultz to suggest a possible joint venture.

Balmuccino said Starbucks "stole" its fully developed concept for lip balms by launching its "S'mores Frappuccino Sip Kit" in April 2019.

The kits included lipstick and gloss in four shades: Campfire Spark, Chocolicious Bliss, Graham Glam and Marshmallow Glow.

Balmuccino said Starbucks did not compensate it for selling Sip Kits, and is seeking unspecified compensatory and punitive damages.

It said its lawsuit is not too late because New York lets some plaintiffs put statutes of limitation on hold when they sue in the wrong forum and, "as here," a court finds it lacks jurisdiction.

Balmuccino originally sued Starbucks in Los Angeles in October 2019.

The case is Balmuccino LLC v. Starbucks Corp, U.S. District Court, Southern District of New York, No. 24-06214.

(Reporting by Jonathan Stempel; Editing by Sandra Maler)