David Protein Achieves Legal Victory in Antitrust Case Involving Epogee Acquisition

David Protein has recently secured a significant win in an antitrust lawsuit filed by three companies. The firms allege that David Protein’s acquisition of alt-fat producer Epogee was aimed at excluding competitors and forming an artificial monopoly.

The Background of the Dispute

The legal conflict commenced last summer when David Protein acquired Epogee, a food technology company known for its innovative ingredient called EPG (esterified propoxylated glycerol). This ingredient mimics the texture and function of traditional fats but offers a fraction of the calories.

Three customers of Epogee—OWN Your Hunger, Lighten Up Foods, and Defiant Foods—claimed they built their businesses around EPG, only to find themselves abruptly cut off from its supply. They filed a lawsuit accusing David Protein of engaging in anti-competitive practices. Several other food companies that utilized EPG in their formulations supported these claims with sworn statements detailing the negative impacts they experienced after losing access.

David Protein’s Position

David Protein contends that it is not obliged to continue selling EPG to companies that have not secured long-term supply agreements. They argue that a variety of alternatives to the patented ingredient are available to formulators in the market.

The Court’s Ruling

In a ruling issued on Wednesday, US District Judge Victor Marrero sided with David Protein by granting the company’s motion to dismiss the case. The judge also rejected the plaintiffs’ request for an injunction, which would have required David Protein to maintain EPG supplies while the litigation was ongoing.

Judicial Insights on Market Competition

Judge Marrero noted that the plaintiffs did not adequately demonstrate that David’s actions had harmed competition within a relevant market. He highlighted inconsistencies in how they defined that market, suggesting they referred to both “low-calorie indulgence foods” and the “global market for EPG supply.”

If considering the low-calorie indulgent food market, Marrero pointed out that the plaintiffs failed to illustrate how consumers would view their products—sauces, nut spreads, and chocolates—as interchangeable with David’s protein bars. Conversely, if the focus was on EPG supply, the plaintiffs did not present evidence of competitive harm such as decreased production, increased prices, or diminished product quality.

“The plaintiffs’ exclusion from purchasing EPG does not equate to reduced output in economic terms,” Marrero stated, emphasizing that the premium pricing of David’s protein bars was not shown to stem from anti-competitive conduct.

Plaintiffs’ Response

In response to the ruling, Brittany Meyer, representing the plaintiffs, expressed determination: “This decision relates to the adequacy of our legal arguments rather than the actual facts or legality of the defendants’ actions. The court has provided us with a 10-day window to amend our complaint to address these deficiencies, and we fully intend to take that opportunity.”

David Protein’s Justification for Supply Control

Peter Rahal, CEO of David Protein, did not comment immediately but previously articulated the company’s position, arguing, “It’s hard to envision any consumer needing to choose between one plaintiff’s chicken sauce and another’s chocolate bars; they are not direct competitors.” Furthermore, as the patent owner of EPG, David Protein argues it is under no obligation to sell EPG to external companies, stating the necessity of using “all available EPG supply to meet the growing demand for our own products.”

Understanding EPG

• What is EPG?
  EPG, or esterified propoxylated glycerol, is a fat substitute that delivers only 0.7 calories per gram, significantly lower than regular fat, which contains 9 calories per gram.
• Distinguishing EPG from Olestra:
  Unlike Olestra, which has been associated with undesirable side effects, EPG acts similarly to fat since it is derived from fat sources.
• Low-Calorie Benefits:
  EPG is resistant to lipase, an enzyme responsible for fat breakdown in the body, thereby ensuring minimal caloric release.
• Labeling:
  EPG can be designated on food labels as “EPG (modified plant-based oil).”
• Production Method:
  The process involves breaking down plant-based oils like canola into glycerin and fatty acids, adding a food-grade link, and recombining them.

Legal Context:
The case is titled OWN Your Hunger, Lighten Up Foods, and Defiant Foods vs Linus Technology (operating as David Protein), Epogee, and Peter Rahal, filed in the Southern District of New York on June 2, 2025. Case number: 1:25-cv-04544.

Further Reading

More EPG customers share tales of woe in David Protein, Epogee litigation

Peter Rahal, David Protein, sued over ‘bait & switch’ scheme to monopolize Epogee’s fat replacer

Protein bar maker David acquires novel fat maker Epogee, raising $75m Series A amid explosive growth