Makers of ice cream machine repair devices sue McDonald’s in $900 million lawsuit

The makers of a device that fixes McDonald’s ice cream machines filed a $900 million lawsuit against the international fast-food chain on Tuesday.

A small company known as Kytch is suing McDonald’s in federal court in Delaware for allegedly disparaging it with false advertisements, according to a 133-page court filing.

“Kytch is bringing this action to set the record straight, to enforce the company’s civil rights, to curb McDonald’s anti-competitive conduct, to recover compensatory and punitive damages, to protect the consumer public from false and misleading advertisements, and to finally fix McDonald’s broke soft serve machines,” the company said in the court filing.

A McDonalds spokesperson denied the allegations and said the company would defend itself in court.

“McDonald’s owes it to our customers, crew and franchisees to maintain our rigorous safety standards and to work with fully vetted vendors in this pursuit,” the spokesperson said. “Kytch’s claims are without merit, and we will respond to the complaint accordingly.”

Kytch was founded by Jeremy O’Sullivan and Melissa Nelson to fix problems with McDonald’s ice cream machines, which repeatedly break and have become a widespread problem that even the fast food chain’s Twitter profile has joked about. .

Kytch claims that the makers of the ice cream machine, a company called Taylor, have the exclusive right to repair McDonalds soft serve ice cream machines, resulting in a “profit scheme” between the two companies. Kytch also claims that Taylor allows his own machines to malfunction or remain temperamental for profit.

Last year, the Wall Street Journal reported that the Federal Trade Commission was investigating similar issues with McDonald’s ice cream machines.

In 2019, the startup developed the Kytch solution, essentially a computing device that connects to soft-service machines and enables remote control and monitoring that “minimizes the need for expensive repair appointments,” Kytch said in the court file.

Kytch won approval from the National Restaurant Association, but McDonald’s and Taylor, hoping to develop their own similar device inspired by the Kytch solution, ran fake ads claiming the Kytch solution was unsafe, claims the company in the court file.

The campaign to discredit Kytch succeeded in “destroying” the small business, according to the company.

“The damage done to Kytch was instant and monumental,” the company said in the filing.”McDonald’s illegal driving had disastrous consequences financial consequences for Kytch, its founders, investors and employees.”

Updated 8:51 p.m.