The legal battle between ABEC and GOOD Meat, also known as Eat Just, has taken a surprising twist as a Pennsylvania court has ruled against the cultivated meat division of GOOD Meat in their ongoing dispute over unpaid bills. The bioreactor firm ABEC claims it is owed a staggering $100 million in cash and stock for work done for GOOD Meat, and the court’s recent decision has set the stage for a dramatic showdown.
In the early chapters of this legal saga, the court has ruled in favour of ABEC, rejecting a bid from GOOD Meat to compel arbitration in the case and turning down a request from Eat Just to stay the case pending arbitration. One legal expert has pointed out that ABEC now faces “two really bad options” moving forward – to litigate and possibly win against a company that is financially depleted, or to settle for a bleak compromise and move on.
The court order dated December 21, 2023, also rejected the argument that Eat Just is not liable for GOOD Meat’s unpaid bills, indicating that ABEC had plausibly alleged that the two entities are essentially one, and that GOOD Meat is an “intentionally undercapitalized alter ego of Eat Just.” However, not all claims put forward by ABEC were upheld, as the judge dismissed certain allegations, leaving room for ABEC to file an amended complaint to address the raised issues.
As the legal wrangling continues, the expense and disruption to the companies involved is expected to rise at every step, leading many to believe that this may eventually push the parties towards settlement discussions. ABEC, which has exclusive deals with GOOD Meat and has been collaborating with them on large-scale bioreactor development, has highlighted their repeated failures and broken promises, leading to the termination of their agreement and the pursuit of damages.
This dramatic turn of events showcases the high-stakes nature of the cultivated meat industry, with millions at play and the future of both companies hanging in the balance. As the legal battle unfolds, the fate of GOOD Meat and ABEC will become increasingly uncertain, adding another layer of intrigue to the ongoing saga.
