MeUndies, Inc. has sued Ordergroove Inc., Ordergroove LLC, and other software companies, seeking to rescind the contract and recover damages, after Ordergroove was alleged to have failed to deliver a key promise in relation to an app.
The complaint filed Monday with the Los Angeles County Superior Court alleges that Ordergroove misrepresented its ability to support MeUndies’ flagship flexible subscription program. The LA-based clothing company has requested a trial by jury in order to recover damages. These include restitution and consequential damages as well as out-of-pocket costs, lost profits, and restitution.
MeUndies would have to pay Ordergroove, starting at $700 per year for the use of its app over a period of three years. MeUndies, according to the complaint, has not been able to use the software. An Ordergroove representative told Bloomberg Law the company is aware of the situation but can’t share additional information at this time.
Forbes described MeUndies’ sales strategy in 2016 as “revolutionizing the underwear business.” The strategy centers on a customizable online subscription program where members can select a specific type, style, and print of garment for the month or opt out altogether. Members can switch selections or cancel their orders until they’re processed for shipment, a level of freedom the complaint says is “unmatched in the industry” but requires complex technical processes to execute.
MeUndies has been running its ecommerce site with a software team that was in-house. The company courted app partners in 2021 to run and manage its subscription program while initiating a move to Shopify Inc.’s platform.
Delaware-based app partner Ordergroove said prior to the contract that it could customize its software product or use existing features to support MeUndies’ flexible subscription program, according to the complaint. But the company “engaged in a bait-and-switch,” the complaint alleges.
The app Ordergroove developed couldn’t support live updates on garment selection or deselection, and daily inventory reports were delayed by as much as 36 hours, the complaint said. Ordergroove’s proposed solutions to the membership stock reservation issue either did not work for MeUndies’ program or lacked a development roadmap or deadline. Ultimately, the two parties agreed in March that Ordergroove couldn’t create a way to run MeUndies’ membership program on its app. Ordergroove then rejected MeUndies’ notice of contract termination.
MeUndies took its Canadian competitor Saxx US Acquisition Inc. to court in an ongoing suit battle over the patent of underwear with genital pockets.
Harris Litigation PC will represent MeUndies. Ordergroove hasn’t made an appearance in the suit.
MeUndies, Inc., Ordergroove, LLC, no. 23STCV16670. The complaint was filed 7/17/23.