Both companies have ‘agreed to terms of settlement,’ according to court documents.
(Crumbl Cookies) Trays of cookies at a Crumbl bakery. The cookie chain, based in Logan, has filed court papers to settle its lawsuit against rival Dirty Dough — the second such settlement between Crumbl and a smaller cookie company this year.
Update: On Nov. 1, a publicist for Dirty Dough confirmed via email that both companies have “reached the settlement and have both signed it.”
More than a year after the start of what have been called the ”Utah Cookie Wars” — a series of lawsuits and billboard campaigns about alleged stealing of proprietary information among Utah cookie companies — an end is in sight.
The largest of the three companies, Logan-based Crumbl, and a company that it had sued, Dirty Dough, agreed to a settlement, according to a court document filed Friday with the U.S District Court in Utah. The court document states that both companies are “finalizing a written agreement to memorialize the settlement.”
In July, Crumbl settled a similar lawsuit it had filed against another Utah-based rival, Crave Cookies.
In both cases, Crumbl claimed trademark infringement over such things as the packaging design, and that the products are “confusingly similar to Crumbl’s established and successful trade dress and brand identity.”
Crumbl’s two lawsuits attracted attention when they were filed in 2022, after CEOs of both Crumbl and Dirty Dough aired their frustrations on LinkedIn and through social media.
In August, a judge denied Crumbl’s request for an injunction against Dirty Dough — a move that Dirty Dough maintained would have destroyed its business. However, the judge did write in his ruling that Crumbl “probably has shown a likelihood of success” in proving its claims that Dirty Dough LLC had taken “trade secrets” from Crumbl.
Crumbl issued a statement Monday, calling the settlement “amicable.”
According to Crumbl’s statement, “as part of the case resolution, Dirty Dough returned the Crumbl information and has agreed to change certain cookie boxes in order to eliminate any potential confusion for customers. The remaining terms of the settlement agreement are confidential.”
Crumbl’s statement concluded: ”Crumbl and Dirty Dough are pleased that they have been able to work together to resolve this dispute and each remains dedicated to serving its customers with excellence. Crumbl and Dirty Dough wish each other success in their future endeavors.”
Dirty Dough founder Bennett Maxwell released a statement Monday: “This journey has been a wild and interesting ride, but now, with the situation coming to a close, we’re eager to shift our full attention to vital business initiatives — particularly raising capital and energizing our new mobile franchise offerings. We are glad to be coming to a successful resolution that allows us to close this chapter and move forward with our vision.”
In Friday’s filing, the companies said they expect to file a request for dismissal of claims within 30 days. The filing reads that “in the event Crumbl and Dirty Dough are unable to finalize the settlement for any reason, they will file a request to reset the case deadlines.”
The news of the potential settlement with Dirty Dough comes after news last week that Crumbl laid off an unknown number of employees.
Crumbl, on its website, lists 928 locations in all 50 states and Puerto Rico — including 29 in Utah. Dirty Dough’s website mentions 36 locations nationally (15 in Utah), and 67 more in the works. Crave has 13 locations across the country, eight of them in Utah, and another 29 listed as “coming soon,” according to its website.
