Yum Brand sues Grubhub, claiming it violated distribution agreement

 A lawsuit was recently filed against Grubhub by Yum Brands (YUM), owner of Pizza Hut, Taco Bell, and KFC, with allegations that Grubhub violated a distribution agreement between the companies. The lawsuit was filed just after Grubhub signed an acquisition deal of $7.3 billion with Just Eat Takeaway.The lawsuit was filed in New York County Supreme Court, with claims that Grubhub CEO Matt Maloney terminated a contract between both companies on June 2, after receiving a letter that claimed that Yum Brand’s collaboration with Uber Eats and Postmates violated the initial agreement. In February 2018, Yum signed a contract with Grubhub to buy $200 million in shares, and simultaneously enter a deal for pickup and delivery of Taco Bells and KFC meals. Pizza Hut president Artie Starrs was strategically added to Grubhub’s board as a part of the agreement.Although Yum requested Grubhub to cancel the termination, the delivery firm refused to do so. Rather it accessed the franchisees ...

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