Miyoko’s Creamery Parts With Namesake Founder, Sues for Stolen IP
Last week, it emerged that pioneer vegan cheese entrepreneur Miyoko Schinner had not only parted ways with her company, but the rift between the founder and the company she founded turned sour when Miyoko’s Creamery sued Schinner for stealing the company’s information, including the creation of some of the brand’s products.
News of Schinner’s departure came to light on Thursday when the company issued a press release. The release said the company and Schinner “have parted ways as the company enters a new phase of growth” and that they have partnered with an executive search firm to find a leader to take the company to “the next phase of growth.”
A day later, news broke that the company had filed a lawsuit in California, accusing the founder of stealing sensitive IP and intentionally disrupting the company’s operations as he developed a plan to start a competing company.
“Instead of making systematic changes, following his resignation as CEO, Schinner conspired to steal the Company’s assets, trade secrets and confidential information in order to establish a rival company,” Miyoko said in the complaint, according to legal website Law360. The company went on to say that Schinner downloaded 24,000 documents from the company’s cloud storage, took cheese cultures and fresh produce from the Miyoko Creamery store, and hired other company employees to participate in “the process.”
After the company broke the news of Schinner’s departure in a press release, Schinner responded on LinkedIn saying that his removal as CEO took place in June 2022 and that “discussions for continued involvement were suspended before Christmas.”
And on Sunday, Schinner posted again on LinkedIn, responding to news of the lawsuit:
It scares me that some board members have decided to file a case against me. There are lies about me that are designed to destroy me and take me off track. I have been working with the Company since I was terminated.
I fail to see how this adds value to the brand that I – and other vegan-driven, passionate former employees – have worked so hard to build.
While I am eager to reveal the truth, I will exercise the necessary care to ensure that I am acting in accordance with my fiduciary duties as a Director and applicable legal rules and guidelines. (while still a Director, I’m not sure how much control or if I actually have it). As always, I appreciate your trust, patience and support.
It is shocking to see this company suing its founder, a top entrepreneur and respected industry pioneer. Undoubtedly, the company knew that the product would suffer a lot as news of these allegations spread to the public, but it clearly felt it was necessary to take this drastic step.
We will continue to follow this story as it develops…
