Legal Troubles for Believer Meats Amid Regulatory Success
Cultivated meat startup Believer Meats finds itself in a challenging situation as the company faces a lawsuit from Gray Construction, the firm responsible for building its production facility in North Carolina. The dispute centers around an alleged $34 million in unpaid bills, raising concerns about the startup’s financial stability.
AgFunderNews reports that Believer Meats has recently laid off employees at its North Carolina facility and in its executive lineup, although the connection between these layoffs and the ongoing legal matter remains unclear.
The Lawsuit Details
According to the lawsuit filed by Gray Construction, the company had completed the design and construction of Believer’s cultivated meat facility by August of this year. However, it claims that Believer failed to meet payment deadlines in violation of a design-build agreement from 2023.
In a forbearance agreement signed in October 2025, Believer acknowledged its debts, agreeing to pay Gray $22 million by December 5, with an additional $12 million due in two installments throughout 2026. Believer’s failure to comply with these terms led Gray to assert that the startup materially breached their agreement, which could trigger foreclosure on the North Carolina property.
Believer disputes Gray’s claims, stating that the construction firm has not adhered to the terms specified in the design-build agreement. This disagreement complicates the potential for a swift resolution to the lawsuit.
Potential Outcomes
If Gray’s lawsuit proceeds and results in a foreclosure or court-supervised sale of Believer’s facility, the startup may consider filing for Chapter 11 bankruptcy protection. This legal maneuver could halt foreclosure and allow for a potential reorganization, provided that a buyer or investor steps in to stabilize the situation.
As of now, Believer Meats has not publicly responded to requests for comment on this matter, while Gray’s representatives have stated the firm will not discuss ongoing legal issues, preferring to focus on their existing clients.
Significance in the Cultivated Meat Sector
Believer Meats, previously known as Future Meat Technologies, operates in both Israel and the United States. It is one of the few cultivated meat startups to have secured an FDA “no questions” letter, confirming the safety of its products. Furthermore, it has garnered a grant of inspection and label sign-off from the USDA, enabling it to launch products from its North Carolina plant, which reportedly has the capacity to produce around 12,000 metric tons of cultivated chicken annually.
The startup’s success is viewed as a significant milestone for the sector, providing hope for rekindling investor interest in cultivated meat. Sources within the industry express regret over the current situation, acknowledging Believer as a key player with three crucial elements: FDA approval, USDA approval, and a functioning large-scale plant.
Financial Landscape and Future Prospects
Believer Meats ranks among the top-funded companies in the cultivated meat industry, having raised $347 million in a Series B round back in 2021. Investors in the startup include notable names such as ADM Ventures and Menora Mivtachim. Despite these funding successes, the landscape for cultivated meat has shifted dramatically since early 2022, with investor funds drying up considerably.
In this context, companies—including Believer—have been forced to cut staff, consolidate resources, and in some cases, cease operations entirely. However, some positive developments have occurred, such as Sydney-based Vow receiving regulatory approvals in Australia and New Zealand.
Technological Advancements
Believer Meats leverages innovative technology initially developed by founder Prof. Yaakov Nahmias. This technology allows the company to attain higher-density cell cultures while using media more efficiently than many of its competitors. A recent peer-reviewed paper indicates that Believer’s production costs could potentially align with those of organic chicken, aiming for a price point of $6.20 per pound.
Conclusion
The ongoing legal issues for Believer Meats illustrate the precarious nature of the cultivated meat industry, characterized by promising advancements hindered by financial and operational challenges. As the situation unfolds, industry stakeholders remain hopeful for a resolution that allows the sector to thrive, turning Believer’s struggles into an opportunity for innovation and revitalization.
