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Court Dismisses Good Meat’s Claim for Arbitration over Non-Payment of Debt

 01/07/2024

The United States District Court for the Eastern District of Pennsylvania ruled against Eat Just Inc. and Good Meat Inc. in a civil action claiming non-payment to equipment supplier ABEC. The two companies controlled by Josh Tetrick claimed that the dispute relating to unpaid debt should be subject to arbitration. Accordingly, ABEC the supplier of equipment and services to Good Meat will proceed in civil court for payment.

 

Presumably as a delaying tactic, Good Meat claimed that payment to ABEC should be subject to arbitration claiming a breach of contract under Delaware law. The ruling by Judge Wendy Beetlestone supported allegations by ABEC that Good Meat Inc. and Eat Just Inc. are subject to common control by Josh Tetrick and that the two companies have comingled corporate assets.  Good Meat did not regularly prepare financial reports in accordance with generally accepted accounting principles and failed to properly administer its corporate form as separate from Eat Just.  The Court agreed with ABEC contentions that Good Meat is allegedly capitalized with assets from Eat Just and used Eat Just resources.

 

The Court established that Tetrick “misrepresented to ABEC the financial situation as to Good Meat.”  In their pleading, ABEC claimed “an overall element of fraud, injustice and unfairness” specifically that Eat Just avoided liability for payment by misrepresenting the true nature and financial health of Good Meat.

 

The result of the Court decision to deny arbitration and the piercing of the corporate veil exposes Tetrick and his various companies to legal action to obtain payment for equipment and services. These were provided in terms of both a pilot plant agreement entered into in June 2021 for $14.7 million and an August agreement to develop bioreactors to the value of $550 million.

 

Despite extensive investment by venture capital companies including the sovereign fund of a Middle-east nation, the various companies established and controlled by Josh Tetrick appear to be unable to meet their commitments and their demise is a forgone conclusion.