THE WHAT? Seed Beauty has filed for dismissal of the case it bought against KKW Beauty and Coty-owned Kylie Cosmetics, according to a report published by the Fashion Law.
THE DETAILS The move follows the settlement of a linked case regarding the misappropriation of trade secrets, which was launched last summer following Coty’s acquisition of stakes in both businesses.
THE WHY? Although the case has settled out of court, those negotiating similar deals should consider the risk of trade secret misappropriation claims bought by third parties, the Fashion Law asserts, quoting Knobbe Martens attorneys, particularly where the subject of a takeover has an established relationship with one of the buyer’s competitors. The ongoing Olaplex-L’Oreal litigation is a salutary lesson in this exact principle.