MrBeast facing legal issues from investors over his snack brand
What's the story
Jimmy Donaldson, better known as MrBeast, is facing a legal dispute with some of his investors. The issue revolves around Feastables, a chocolate and snack brand launched by Donaldson in 2022 under his holding company Beast Industries. The brand has an estimated valuation of nearly $5 billion. Some investors are unhappy with how the YouTube star has allegedly managed the brand and are considering legal action against him for alleged contract breaches.
Financial performance
Feastables generated $250 million in revenue in 2024
Feastables was launched with a grand promotional event, including a real-life chocolate factory and "golden tickets. The brand had a strong start, generating around $250 million in revenue in 2024. However, according to a source familiar with the financials, revenue has since declined from earlier projections of $500 million in 2025.
Representation shift
Source denies any wrongdoing on Donaldson's part
A source close to Donaldson has denied any wrongdoing on his part, attributing the dispute to a change in representation that took place a couple of years ago. The source said, "Jimmy didn't make these deals, his previous managers did, and it is pretty rich that it's coming up right now." They also noted that hiring Jeff Housenbold as president and CEO of Beast Industries and Damien Atkins as chief legal officer has helped improve the company.
Ongoing disputes
Ongoing legal battle with former partner
Donaldson is also embroiled in a long-standing legal battle with his former partner, Robert Earl, and his Virtual Dining Concepts (VDC) over the launch of MrBeast Burger in 2020. After two years, Donaldson sought to terminate their partnership, claiming that VDC's rapid expansion hurt quality control. The dining firm countersued for over $100 million, alleging breach of contract and intentional tortious interference. The dispute continues to unfold.
Lawsuit details
Class action lawsuit from 'Beast Games' participants
Donaldson is also facing a class action lawsuit from participants of Season 1 of "Beast Games," a reality competition series on Amazon Prime Video. The plaintiffs allege unpaid expenses and wages, lack of medical care and food during production, and sexual harassment. Despite these allegations, Donaldson's representative said they were reviewing the situation after logistical issues complicated the promotional video shoot with over 2,000 participants.