YouTube Star MrBeast Faces $100 Million Lawsuit from Virtual Dining Concepts Over Burger Ghost Kitchen The lawsuit claims that Jimmy Donaldson, also known as MrBeast, harmed VDC's reputation, broke agreements, and negatively impacted suppliers, vendors, and customers, leading to "enormous financial harm."
Key Takeaways
- YouTube sensation Jimmy Donaldson is being sued by Virtual Dining Concepts for alleged contractual breaches and damaging business.
Opinions expressed by Entrepreneur contributors are their own.
Jimmy Donaldson, also known as MrBeast, is being sued by Virtual Dining Concepts (VDC), the company behind his ghost kitchen, MrBeast Burger, Variety reported.
The lawsuit, filed in the Supreme Court of the State of New York, alleges that MrBeast failed to uphold his contractual commitments and engaged in intentional interference with business operations, resulting in damages exceeding $100 million.
"This case is about a social media celebrity who believes his fame means that his word does not matter, that the facts do not matter, and that he can renege and breach his contractual obligations without consequence," the complaint states.
Related: Fans Cause Near Riot at MrBeast Burger Opening at New Jersey Mall
MrBeast Burger, a virtual chain, launched in 2020 and quickly expanded to over 1,700 locations globally by the end of 2022, operating through delivery and pick-up services.
The legal dispute follows a lawsuit initiated by Donaldson last month against VDC, where he sought to terminate their agreement, claiming that the quality of the food served under the MrBeast Burger brand was "disgusting" and damaging to his reputation.
Last week, VDC responded by calling his claims as unfounded and "ill-advised," and asserted that he had breached their agreement.
VDC contends that Donaldson's actions have adversely affected the reputation of MrBeast Burger and the company itself by tarnishing its relationship with suppliers, vendors, and customers.
"This wanton conduct has caused Plaintiffs to suffer enormous financial harm," the lawsuit claims.
Jimmy Donaldson, aka MrBeast, has garnered a worldwide social media following for his videos doing challenges and stunts. Michael Tran | Getty Images.
Donaldson, who has nearly 320 million followers across his social media platforms, is accused of failing to fulfill promotional obligations, making "disparaging comments" about the brand on social media, and negatively impacting relationships with suppliers and partners. The lawsuit cites instances where Donaldson expressed his dissatisfaction with VDC and the quality of the food in tweets that have since been deleted.
"If I had the ability to close it, I would have done so a long time ago sadly. Sometimes when ur young you sign s**t deal," the internet star wrote in a now-deleted tweet cited in the lawsuit.
Donaldson has over 22 million followers on X (formerly Twitter), 40 million on Instagram, 81.6 million on TikTok, and almost 174 million subscribers on YouTube. His content is marked by carrying out extensive challenges, stunts, and giveaways — such as counting to 100,000 (which took him 40 hours) and spending $3 million worth of hearing aids for deaf individuals, which was met with criticism for exploitation.
Despite Donaldson's immense popularity, this legal battle underscores how influencers and brands work together in the age of social media.
"Like any party to a contract, Donaldson must be held to his word, and held accountable for his contractual breaches and other misconduct," the lawsuit states.
