A popular ice cream brand sold at Walmart and Kroger files for bankruptcy after ‘trade dress’ lawsuit
A years-long lawsuit between two ice cream brands, Van Leeuwen Ice Cream and Rebel Creamery, has come to a possible end, with a federal judge ruling that Rebel infringed Van Leeuwen Ice Cream’s trade dress, and ordering that Rebel owes Van Leeuwen tens of millions of dollars. But now, Rebel is seeking Chapter 11 bankruptcy protection while it appeals the judgment. Here’s what you need to know.…
Rebel Creamery, a keto-friendly ice cream brand sold at Walmart, Kroger, and other grocery stores, has filed for Chapter 11 bankruptcy protection. The decision came shortly after U.S. District Judge Eric Komitee ruled that Rebel had infringed on competitor Van Leeuwen's trade dress and ordered Rebel to pay $23.8 million in damages.
Van Leeuwen, a well-established ice cream brand, had taken legal action against Rebel due to the similarity in their packaging designs, which led to customer confusion and lost sales for the company. The trade dress refers to the overall look of a product, including its packaging. In this case, Van Leeuwen's distinctive pastel-colored packaging with black script was found to be similar to Rebel's, leading to the lawsuit.
The judge ruled in favor of Van Leeuwen, citing detailed records and files provided by the company, which supported the origin of their trade dress design. Rebel's founders claimed they designed the packaging independently, but lacked supporting documentation. The bankruptcy filing allows Rebel to continue selling its ice cream while it appeals the decision and reorganizes under Chapter 11. The outcome of the bankruptcy and appeal will determine Rebel Creamery's future.
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