Crocodile attack! The popular shoe firm is suing Colorado rival Joybees, which was created by the son of its former COO and chief executive officer, over claims it stole trade secrets.
- Crocs is suing Joybees owners saying they have removed their product
- Joybees was started by Kellen McCarvel, son of former Crocs CEO John McCarvel.
- Kellen previously worked for Crocs in a mid-level management role.
Crocs owners are suing a competing brand run by the son of the popular shoe brand’s former COO and CEO.
A federal lawsuit alleges that Kellen McCarvel, the son of John McCarvel, stole thousands of documents before leaving the company and establishing Joybees.
John McCarvel served as Crocs’ CEO from 2010 to 2014.
Crocs claims that Kellen, who previously worked in a mid-level management position at the rubber clog company, took trade secrets and stole intellectual property.
The established business said in its lawsuit that Kellen used a USB to download files on his way out the door and used those files as a shortcut to Joybees’ success.
A day before Crocs filed its lawsuit, Joybees filed a different lawsuit alleging that Crocs has been operating an illegal monopoly in the market for injection-molded clogs.
Can you tell the difference? Joybees (left) and Crocs (right) shoes
A federal lawsuit alleges that Kellen McCarvel (pictured) stole thousands of documents before leaving the company and establishing Joybees
According to the lawsuit, filed in Colorado federal court on July 6, Kellen used trade secrets in his company emails to help start Joybees in 2020.
Crocs alleges that emails and documents taken by the former employee helped Joybees establish success in a few months, which took Crocs a decade.
They say he illegally downloaded the items from his Crocs computer and email account the day before he left the company.
This is not the first time that the more established of the two companies has taken the other to court.
In October 2021, Crocs filed a lawsuit against Kellen – the CEO of Joybees – for breach of contract and theft of trade secrets, KDVR informed.
Just one day before Crocs filed its new lawsuit against the competitor, Joybees filed a counterclaim against Crocs.
In its lawsuit, the rival denied all of Crocs’ claims.
In addition, they allege that Crocs is violating antitrust laws in the US.
They say the company uses its economic power to “illegally monopolize the US market for ‘injection-molded clogs.’
In October 2021, Crocs filed a lawsuit against Kellen – the CEO of Joybees – for breach of contract and theft of trade secrets, KDVR reported.
According to the lawsuit, filed in Colorado federal court on July 6, Kellen used trade secrets from his company’s emails to help start Joybees in 2020.
Kellen is the son of former Crocs CEO John McCarvel (pictured)
Like Crocs, JoyBees sells little stickers that can be added to the holes in your shoes.
In their counterclaim they also stated that they have faced ongoing losses and damages due to Crocs.
The company estimates they lost about $1.6 million in annual revenue due to Crocs’ alleged abuse of its monopoly power.
Joybees is asking the court to rule in its favor, saying its products do not infringe an existing trademark or patent owned by Crocs.
This statement would help clear up the allegations of stolen intellectual property.
In a statement to Fox Business, a Crocs representative said they are not giving up in their fight against their competitor.
The company said it will “protect and defend its intellectual property and proprietary information against theft and abuse by third parties.”