A lawsuit claiming Martha Stewart Living Omnimedia tried to undercut a business partner’s relationship with pet products retailer PetSmart can proceed, a New York state judge ruled Monday.
Age Group in July 2009 entered a four-year licensing deal with Martha Stewart Living to market and sell Stewart-branded pet products. Four months later, Age Group and PetSmart struck a deal under which PetSmart would buy Stewart-branded pet products from Age Group.
Age Group, which manufactures and licenses products for distribution, sued Martha Stewart Living last year in state court in Manhattan for breach of contract and other claims.
The suit said that after Age Group contracted with PetÂSmart, Martha Stewart Living realized it had undervalued Stewart-branded pet products. Martha Stewart Living disparaged Age Group to PetSmart and withheld approval of pet products to try to get PetSmart to contract directly with Martha Stewart Living, the complaint said.
Manhattan Supreme Court Justice Shirley Kornreich denied Martha Stewart Living’s bid to dismiss the suit.