Utah's cookie wars hit court between Crumbl, Dirty Dough

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The cookie wars continue as a federal judge will decide whether to block Dirty Dough from continuing to expand as it faces a lawsuit from Crumbl accusing it of stealing trade secrets and copying its business model.

It's the latest salvo in an escalating legal war over gourmet cookies that are incredibly popular in Utah and surrounding states, with cookie shops popping up all over and fans picking sides.

On Thursday, U.S. District Court Judge Howard Nielson Jr. heard testimony from the leaders of both companies. Crumbl CEO Jason McGowan testified that his gourmet cookie company had many competitors.McGowan testified that Crumbl takes many steps to protect its business information, including internal apps, PIN codes to unlock recipes, and special packets with ingredients to add to their cookies.

Brad Maxwell's attorney argues that his client had proper access to the documents during his time as a Crumbl employee. He insists they are not trade secrets, nor was his client under a confidentiality agreement from Crumbl. Questioned about the documents, Bennett Mawell disputed that what was provided was any kind of trade secret, bound to a confidentiality agreement or even a recipe, as it was not complete.At times, the Dirty Dough executive's testimony got tense and Judge Nielson had to tell him to directly answer the lawyer for Crumbl's questions. But Bennett Maxwell told the court that if Crumbl got its way and blocked franchise payments, it would put Dirty Dough out of business.

 

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