Beauty tech startup Nomi Beauty has filed a lawsuit against cosmetics giant Estee Lauder, accusing it of stealing its proprietary technology and driving the company out of business. The case was brought in federal court in New York.
Nomi, whose name is pronounced “know me,” claims it developed tools to help beauty brands understand consumer preferences, particularly among hotel travellers. It says it shared its “secret sauce” with Estee Lauder to boost sales in luxury hotels, duty-free shops and in-room services.
According to the lawsuit, Estee Lauder ended its contracts with Nomi in 2018 and 2020, then used the startup’s confidential information to launch its own sales programmes in China, Costa Rica, Malaysia, the UK and the US. Nomi also alleges that Estee Lauder cut off supplies to hotels working with it, making it impossible for the smaller firm to operate.
The startup is seeking unspecified compensatory, punitive and triple damages. “Nomi’s stolen innovations brought Estee Lauder into the information age, and Estee Lauder continues to profit from them wildly,” Nomi’s lawyers told Reuters.
The lawsuit comes a year after Estee Lauder announced plans to cut up to 7,000 jobs globally and reported a $590m loss for the second quarter of 2024, blaming weak demand at airports and subdued spending in Asia.
