McDonald’s (MCD) has found itself embroiled in a $900 million lawsuit over a device that is designed to fix its frequently broken ice cream machines.

According to a report by Wired, startup Kytch filed the multi-million-dollar suit against the burger giant accusing it of false advertising and tortious interference in its contracts with customers.

In 2019, Kytch developed a small device that was designed to be installed inside McDonald’s ice cream machines that troubleshoots and remotely monitors them through a web or smartphone interface using the machine’s internal communications.

Kytch claims that McDonald’s emailed every franchisee back in November 2020 instructing them to remove the devices from their ice cream machines immediately, saying the devices violated the ice cream machines’ warranties and intercepted “confidential information” as well as posed a safety threat and could lead to “serious human injury” – a claim that Kytch said is false and defamatory, Wired reported.

Kytch went on its compliant to say that McDonald’s promoted longtime manufacturing partner Taylor’s new ice cream machine that offered a similar feature.

Kytch claims that McDonald’s email capped its fast-growing sales just as the new startup was gaining traction.

“They’ve tarnished our name,” Kytch co-founder Melissa Nelson told Wired. “They scared off our customers and ruined our business. They were anti-competitive. They lied about a product that they said would be released.

“McDonald’s had every reason to know that Kytch was safe and didn’t have any issues. It was not dangerous, like they claimed. And so we’re suing them,” she added.

McDonald’s ice cream machines are frequently nonoperational and have become a running joke on social media that they are always broken.

A website called McBroken.com was even created to track broken ice cream machines at McDonald’s locations so customers would know if they would be able to order ice cream or McFlurry in a restaurant near them.

As of Thursday morning, 11.76% of McDonald’s ice cream machines were broken at U.S. restaurants, according to McBroken.com.

Kytch is seeking $900 million in damages from McDonald’s with its lawsuit.

As of Thursday at 11:04 a.m. EST, shares of McDonald's were trading at $237.87, down $3.07, or 1.28%.

McDonald's reported higher profits on price increases and strong consumer demand despite higher costs
McDonald's reported higher profits on price increases and strong consumer demand despite higher costs AFP / WANG Zhao
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