MrBeast’s Feastables hit with investor lawsuit threat over contract and image rights issues

MrBeast, aka Jimmy Donaldson, is facing legal threats from early investors in Feastables, his chocolate and snack brand, over alleged contract breaches and image-rights disputes.

What Investors Are Claiming

According to Page Six Hollywood, a group of Feastables investors have hired lawyers and are preparing formal legal action.

The dispute centers on Donaldson’s image and likeness, exclusivity agreements, and other contractual obligations tied to the brand. Investors allege these terms were not honored as the company grew.

A source close to Donaldson denies wrongdoing, saying “Jimmy didn’t make these deals, his previous managers did” before major leadership changes.

Feastables’ Rapid Rise and Slowing Growth

Launched in 2022 under Beast Industries, Feastables became one of the biggest creator-led consumer brands. It generated ∼$250 million in revenue in 2024 after a Willy Wonka-style launch with a real chocolate factory and golden tickets.

Early projections targeted $500 million in 2025, but sources now say sales have slowed and fallen below those forecasts. Beast Industries is valued at close to $5 billion.

Leadership Changes at Beast Industries

To strengthen and professionalize the company, Beast Industries brought in new leadership over the past two years. Jeff Housenbold, a former eBay executive, joined as President & CEO in 2024, while Damien Atkins was appointed Chief Legal Officer and Michelle St. Jacques, formerly of Molson Coors, became President of Feastables.

According to insiders, the current investor disputes stem from agreements made under previous management, rather than decisions by the new executive team.

Other legal issues: MrBeast is also dealing with a $100M+ countersuit over MrBeast Burger and a class-action lawsuit from Beast Games participants.