In a recent update, Lifeway Foods has announced the resolution of a legal dispute with its competitor, Pure Culture Organics. The lawsuit, filed by Lifeway in April against Edward and Ludmilla Smolyansky, alleged theft of proprietary information when setting up Pure Culture Organics. Edward and Ludmilla, who are siblings and relatives of Lifeway CEO Julie Smolyansky, used to work for Lifeway.
The lawsuit claimed that Pure Culture Organics “decided to cheat by stealing the formula from Lifeway and trading on its long-established and credible good name.” Lifeway also accused Edward Smolyansky of violating a confidentiality clause in a separation agreement with the company. However, Pure Culture Organics stated that Lifeway chose to dismiss its claims against them instead of pursuing a ruling on the merits.
Edward Smolyansky, President of Pure Culture Organics, expressed relief at the lawsuit being dropped, allowing the company to focus on new product developments like PCO Kids kefir. We reached out to Pure Culture Organics for details on their product expansion efforts.
The legal dispute was the latest in a series of conflicts within the Smolyansky family. Two years ago, Edward and Ludmilla publicly called for Julie to be removed as Lifeway’s CEO. Following negotiations, the company agreed to review strategic alternatives and restructure its board. Edward and Ludmilla left Lifeway last year to establish Pure Culture Organics and launched their product range at a trade show in California.
In 2023, Ludmilla resigned from Lifeway’s board due to disagreements over the company’s direction. A shareholder subsequently urged Lifeway to consider selling the company after strategic alternatives were not pursued. Danone, a dairy giant, holds a 24% stake in Lifeway.
