Hello Logistics is suing Apoorva Mehta, the founder behind Instacart for creating a copycat firm and stealing the company's "trade secrets."
The complaint says that NextMed, another name of the company, has filed a lawsuit not only against Mehta, but also to the other person who is involved in the filing.
Instacart Founder Sued For Stealing Confidential Information
(Photo : Steve Jennings/Getty Images for TechCrunch)
SAN FRANCISCO, CA - SEPTEMBER 14: Founder and CEO of Instacart Apoorva Mehta speaks onstage during TechCrunch Disrupt SF 2016 at Pier 48 on September 14, 2016 in San Francisco, California.
According to a report by Bloomberg on Tuesday, Dec. 20, NextMed is going after Instacart after it discovered that it has been using some details which are used by the existing healthcare startup.
The filing highlights that aside from Mehta, Tejasvi Singh who currently runs Cloud Health Systems will also face the repercussions.
NextMed alleges that Mehta and his business partner have infringed copyright claims of the company. Additionally, they are accused of collecting the startup's trade secrets.
For context, NextMed and Cloud Health Systems are both companies promoting healthcare services to the masses. They have identical websites which help people to lose weight faster through an effective method.
"Wanting in on NextMed's success, and in search of venture capital funding for a new project, Mehta teamed up with Singh, "to do what Mehta later said he considered unethical but not illegal--create a copycat company," NextMed wrote in a filing submitted to the Manhattan federal court on Monday, Dec. 19.
The complaint adds that Singh is responsible for getting the confidential trade information of the company when he's still discussing matters with investors during his tenure at NextMed.
When Singh gathered all the needed information to make a new startup with Mehta, they came up with creating a copycat website dubbed "Sunrise."
Moreover, the complaint adds that Mehta and Singh also stole NextMed's strategies and the customer acquisition technique in just a few weeks.
Instacart did not answer when asked about the allegation. In an emailed interview with Bloomberg, Sunrise did not respond to the request, as well.
NextMed urges Singh and Apoorva to remove the Sunrise website as part of its compliance to its violation. Additionally, it also seeks financial damages done by the copycat firm.
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Instacart Hits $30 Million Funding In Just Weeks
Just a few weeks ago, Apoorva said that Instacart has already raised about $30 million funding for the Cloud Health Systems, according to The Wall Street Journal.
At the time, the WSJ noted that it's the biggest funding this year which involved a healthcare startup which has not yet started operations.
Before the company's launch, some people who claimed to be familiar with Cloud Health said that the company will focus on "metabolic health and obesity."
The WSJ also reported that the Instacart CEO aims to "own multiple consumer brands" for various medical conditions.
