Estee Lauder Hit With Lawsuit Alleging Technology Theft From Beauty Startup
GeokHub
New York | Jan 20 (GeokHub) Global cosmetics giant Estee Lauder has been sued by a New York–based beauty technology startup that claims the company misappropriated proprietary technology designed to boost sales among luxury travelers, ultimately forcing the smaller firm out of business.
In a lawsuit filed late Friday in Manhattan federal court, Nomi Beauty accused Estee Lauder of abandoning commercial agreements while allegedly using Nomi’s technology to generate billions of dollars in new revenue across global hotel and duty-free channels.
Claims of Stolen Trade Secrets
Nomi, which describes itself as a disruptive beauty-tech company, said it developed systems capable of identifying consumers’ actual cosmetic preferences — rather than relying on self-reported choices — a capability it says was shared with Estee Lauder during collaborations beginning in 2018.
According to the complaint, the technology was designed to help Estee Lauder’s brands, including MAC and Clinique, expand sales in luxury hotels, duty-free outlets, and in-room shopping platforms, reducing reliance on traditional brick-and-mortar retail.
Instead of acquiring the startup or honoring existing agreements, Nomi alleges Estee Lauder cut off product access to hotel partners while launching competing programs in markets including China, the United States, the United Kingdom, Malaysia, and Costa Rica.
“These programs rely on the same trade secrets Nomi spent years educating Estee Lauder about,” the lawsuit states.
Startup Seeks Damages
Nomi is seeking unspecified compensatory, punitive, and treble damages, arguing that its innovations were central to Estee Lauder’s ability to modernize its consumer data and personalization strategies.
“Nomi’s stolen innovations brought Estee Lauder into the information age, and the company continues to profit from them on a massive scale,” Nomi’s attorney, Matthew Schwartz, said in a statement.
Estee Lauder did not immediately respond to requests for comment.
Legal Challenge Amid Corporate Restructuring
The lawsuit comes as Estee Lauder continues implementing its “Beauty Reimagined” turnaround strategy, launched last year to reverse declining sales. The plan includes prestige product launches, supply-chain restructuring, and workforce reductions of up to 7,000 jobs globally.
Both Estee Lauder and Nomi Beauty are headquartered in New York.
