Eat Just and GOOD Meat Settle Legal Dispute with ABEC
Eat Just and its cultivated meat subsidiary GOOD Meat have reached an agreement in principle to settle their legal dispute with bioreactor supplier ABEC, although the matter is still pending final resolution according to court documents.
In a letter to Judge Wendy Beetlestone dated February 6, attorneys for both parties explained that they have reached an agreement in principle regarding the framework for a settlement agreement and the material terms. However, due to the complex nature of the claims, defenses, and counterclaims, additional time is required to draft a binding agreement.
Judge Beetlestone has agreed to appoint a magistrate judge as a settlement master to facilitate a final resolution but rejected the request for a 30-day stay on the litigation and case deadlines.
Neither party has provided a comment to AgFunderNews regarding the settlement.
Background of the Legal Dispute
The legal dispute between ABEC and GOOD Meat began in March 2023 when ABEC filed a lawsuit accusing GOOD Meat of breach of contract for not paying bills on time. ABEC claimed that GOOD Meat owed $62,649,231.79 for completed work, while GOOD Meat alleged that ABEC breached the contract terms.
The dispute stemmed from a seven-year agreement signed in August 2021, where ABEC was to design, manufacture, install, and commission multiple 250,000-liter vessels for a large-scale cultivated meat facility in the US. However, due to financing challenges, a phased approach with five 125,000-L bioreactors was proposed by GOOD Meat by November 2022.
ABEC took legal action in March 2023 over the unpaid bills, leading to counterclaims from GOOD Meat disputing the formal ratification of amendments to the original agreement and alleging that ABEC proceeded without proper approval.
Eat Just founder and CEO Josh Tetrick revealed that the focus was on process development at their plant in California and the development of new cell lines for efficient large-scale production, rather than raising funds for a new facility.
The case is identified as ABEC, Inc. v. Eat Just, Inc. et al., No. 5:23-cv-01091.
