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Insurgent Creamery has filed for Chapter 11 chapter safety in Utah, reporting roughly $13.78 million in property and $23.85 million in liabilities because it appeals a $23.785 million judgment awarded to rival Van Leeuwen Ice Cream in a trade-dress dispute.
Insurgent ice cream is offered at Walmart, Kroger, Safeway and different grocery shops nationwide.
Insurgent Creamery LLC filed for Chapter 11 safety on Aug. 14 within the U.S. Chapter Courtroom for the District of Utah, in accordance with courtroom data.
Van Leeuwen is listed amongst Insurgent’s unsecured collectors with a $23.785 million declare stemming from the federal judgment. Insurgent listed the declare as disputed and famous that the judgment is underneath enchantment.
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Insurgent Creamery has filed for Chapter 11 chapter safety following a multimillion-dollar judgment in a packaging dispute with rival Van Leeuwen Ice Cream. (Getty Photographs )
The Van Leeuwen judgment accounts for practically all of the unsecured liabilities that Insurgent listed at fastened quantities in its chapter schedules. The corporate additionally reported roughly $5.22 million in money and money equivalents, $2.59 million in accounts receivable and $5.65 million in stock.
Insurgent’s voluntary petition estimated each its property and liabilities at between $10 million and $50 million and mentioned funds can be obtainable for distribution to unsecured collectors. The submitting lists Austin Archibald as the corporate’s supervisor and member and Michael Johnson of Ray Quinney & Nebeker as chapter counsel.
The chapter submitting got here lower than a month after U.S. District Decide Eric Komitee dominated that Insurgent had deliberately infringed and diluted Van Leeuwen’s commerce gown via its ice cream packaging.
Insurgent ice cream is offered at Walmart places. (Jeffrey Greenberg/Common Photographs Group by way of Getty Photographs)
“The proof at that trial left little question that Insurgent infringed and diluted Van Leeuwen’s commerce gown and did so deliberately,” Komitee wrote in a July 16 memorandum and order.
Van Leeuwen sued Insurgent in 2021, alleging that the corporate’s packaging copied the distinctive look of its ice cream pints.
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The courtroom described Van Leeuwen’s commerce gown as together with monochromatic cardboard pints with matching lids, a primarily pastel coloration palette, black script lettering and an total minimalist design.
Komitee discovered that Insurgent’s packaging was related and that the proof supported findings of client confusion and dangerous religion. The decide ordered Insurgent to cease promoting merchandise bearing commerce gown prone to be confused with Van Leeuwen’s and required the corporate to revamp its packaging.
President Joe Biden, flanked by host Seth Meyers, patronized Van Leeuwen Ice Cream after taping an episode of “Late Night time with Seth Meyers” in New York Metropolis on Feb. 26, 2024. (Jim Watson/AFP by way of Getty Photographs)
Van Leeuwen sought $36.4 million in Insurgent’s earnings, however the courtroom decreased the award by 33%, discovering that some gross sales had been pushed by demand for keto and better-for-you ice cream relatively than the packaging at situation.
The discount left Van Leeuwen entitled to $23.785 million in Insurgent’s earnings from gross sales of ice cream pints bearing the infringing commerce gown.
Courtroom filings don’t set up that the Van Leeuwen judgment was the only reason for Insurgent’s chapter submitting.
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Insurgent’s chapter paperwork lists the Van Leeuwen litigation as being on enchantment.
