Daymond John is fighting back after two former “Shark Tank” contestants alleged they had a “nightmare” of an experience after working with the celebrity investor.
Al “Bubba” Baker and his daughter Brittani made a number of allegations against John regarding business practices, after John invested in their company: Bubba’s Q Bar-B-Q.
The Bakers have accused him of misleading and misappropriating funds intended for their family business, as well as changing the terms of the original agreement set during the taping of their episode in season five of “Shark Tank.”
Their claims were shared in an article by The Los Angeles Times, which also reported that John has filed his own complaint seeking a restraining order and a preliminary injunction against the Bakers. That case was dismissed without prejudice in federal court by a judge in New Jersey last week, citing “jurisdictional issues.” John has filed an amended complaint that is pending.
In addition, Rastelli Foods also wants a restraining order against the Bakers, with the meat manufacturer that produces the barbecue company’s baby back rids, alleging the Bakers have made “false” and “defamatory statements” against the company.
In a statement shared with the outlet, a spokesperson for John called out the Bakers for making “slanderous” posts on the internet and in the media.
“After repeated attempts to give the Bakers the ability to correct their violations, it is unfortunate that it has come to this,” said Zach Rosenfield. “This temporary restraining order is due to the Bakers’ blatant actions to undermine a business partnership and the legal parameters they agreed to 4 years ago. Their belief that they can unwind poor business decisions through slanderous social media posts and articles will no longer be tolerated.”
John disputed the Bakers’ claims about their troublesome relationship and that they were excluded from discussions and meetings about their company’s finances.
He insists he did everything to help the boneless ribs business, as a non-manging partner of the company. In his complaint, he stated that he had no “access or control over the company’s books and records,” adding that he was limited to only acting as a “brand ambassador.”
The FUBU co-founder once again accused the Bakers of violating their confidentiality agreement — a claim initially made in a three-and-a-half-minute video he shared days after the Los Angeles Times report.
John maintains that the Bakers hired six different lawyers to defend the allegations noted in what he describes as a “fast-and-loose story.” The 54-year-old also alleges they also broke the terms of arbitration and mediation settlements in 2019.
Reiterating his other statements, John said took a “financial loss from his business dealings with Defendants, while Defendants acknowledge they have reaped at least $659,000 in profits alone.”
Bubba’s Q Bar-B-Q reportedly generated $16 million in revenue within three years of the Bakers appearing on the show. Contingent upon getting a licensing deal with a meat processing company, Al accepted John’s offer of $300,000 in return for a 30 percent stake. That deal was later changed to $100,000 for a 35 percent stake.
John’s video response arrived on May 21 — the same day he had his lawyers send the Bakers a cease-and-desist letter notifying them of the breach of contract. He has urged the court to demand they stop making “disparaging or defamatory remarks against” him and to stop revealing information that was intended to be confidential.
To support their claims, the Bakers have shared and posted numerous emails, contracts and documents shared between them and John on multiple social media platforms. They claim they were driven to do so after having “no communication” or contact with John and Rastelli Foods Group.
In turn, John claims he had lost various business opportunities, such as a speaking engagement that would have potentially earned him between $50,000 and $75,000.
The Bakers stand on the position that they have every right to publicly share their experience with the “Shark Tank” investor and Rastelli for “causing us irreparable harm.”
“We have reason to suspect fraudulent and illegal activities in the accounting practices between Rastelli Foods and Daymond John, coordinating to. statement from the rejoinder letters allegedly sent to the judge. We have reached out to governmental agencies to investigate this matter, as we believe it is in the best interest of the public.”
Social media users have mixed feelings about the accusations and allegations against John. Some are shocked and stunned at the thought of the serial entrepreneur seemingly taking advantage of the small company and others believe the claims are true.
Here’s what a few said:
“I’m clutching my pearls! Not Shark Tank!”
“Should of been a sign after he changed the on air deal. Nasty work.”
“Interesting…typically, one only wants to silence people when they’re telling the truth and when that truth puts one in a negative light. Just another “big guy pummeling a little guy” story. Sad…”
“I wonder how most of these deals are turning out for all of these entrepreneurs for Daymond John to seek a temporary restraining order against former ‘Shark Tank’ contestants.”
Several businesses have accused John of the same claims, some of which were resolved through settlements. He also failed to invest in various opportunities that later became lucrative businesses such as The Lip Bar.
