Starbucks Faces Lawsuit Over Alleged Theft of Coffee-Flavored Lip Balm Idea

Starbucks (SBUX.O) is facing a third lawsuit from Balmuccino, a Los Angeles-based company, accusing the coffee giant of stealing its idea for coffee-flavored lipstick and lip gloss. The lawsuit was filed on Friday in Manhattan federal court.

This legal action follows the dismissal of an earlier version of the lawsuit by a Seattle federal judge in July 2023, marking the second time the case was dismissed on procedural grounds.

Balmuccino, which had Dr. Mehmet Oz’s sister-in-law among its leadership, claims it began developing coffee-flavored lip balms in 2016 and presented the concept during an October 2018 meeting at Starbucks’ New York office. The company alleges that Dr. Oz facilitated this meeting by reaching out to Starbucks CEO Howard Schultz.

Balmuccino accuses Starbucks of launching its “S’mores Frappuccino Sip Kit” in April 2019, which included lipstick and lip gloss in four shades, based on the idea Balmuccino had pitched. The company claims it was not compensated for the concept and is seeking unspecified damages.

The lawsuit argues that it is not time-barred due to New York’s allowance for certain plaintiffs to pause statutes of limitation when suing in the wrong forum, as was the case here when a court found it lacked jurisdiction.

Balmuccino first sued Starbucks in Los Angeles in October 2019. The current case is filed in the U.S. District Court, Southern District of New York, under case number 24-06214.