Why Did This Fair Practices Lawsuit Get a Close Shave?

Do you know how big the international shaving razor market is? Probably a lot bigger than you ever imagined. One company controls around 65 percent of the market for shaving razors worldwide, and that company brings in about $7 billion a year. So, when a new kid on the block shows up, you bet that company is going to protect its business. But did this company’s non-compete lawsuit go too far? Its competitor thinks so, and it filed a fair practices lawsuit to prove it.

Will This Fair Practices Lawsuit Cut Deep?

ShaveLogic is an ambitious new startup in the shaving industry. Its advanced razors features more blades in a smaller razor and a shaving head that locks in place with magnets. After developing its products, and putting together a sizzle reel, this company started approaching investors a few years ago, but things haven’t gone according to plan.

P&G—owners of the largest shaving company in the world, Gillette—slapped ShaveLogic with a lawsuit before the company could really get to rolling. P&G claims that the startup stole proprietary information when it hired former Gillette employees as consultants. The company went on to claim that those former employees were in violation of the non-compete clauses they signed when they worked for the company. That’s not how ShaveLogic sees things though.

The little startup claims that the P&G lawsuit is an attempt to stifle the little company by scaring away its investors. In 2014, a marketing company allegedly backed out of negotiations with ShaveLogic because of letters and threats of legal action sent by P&G. Plus, ShaveLogic claims that other backers have dropped out, not wanting to deal with the legal battle that lies ahead with P&G.

Because of this, the startup has filed a countersuit claiming that P&G is violating fair practice rules by using its lawsuit to scare ShaveLogic’s potential investors. A judge agreed, and refused P&G’s request to dismiss the countersuit, but the shaving giant wasn’t done. It appealed the judge’s decision.

Will ShaveLogic’s Countersuit Stand?

Three judges in Appeals Court agreed with the Suffolk Superior Court judge who struck down P&G’s motion to dismiss. It was a big victory for the small startup, but the company will still have to endure a long legal battle. Do you think ShaveLogic will beat P&G? If it does, will investors flock to the little company? Keep following this story and other business litigation news that matters by reading our blog and checking in on our Facebook and Twitter.

Garland & Mason, LLC—a New Jersey business law firm that handles business litigation, real estate law and business transactions.

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