No one or business is immune to scandal or court action. Kourtney Kardashian Barker is the latest reality TV star-turned-entrepreneur hit with a possible lawsuit.
For someone who spent decades building her empire on her name, it’s a massive blow. Kardashian Barker’s successful supplement brand, Lemme, is under investigation over claims that it “violated consumers’ rights” by deceptively marketing its products.
The latest update is that the brand is now facing a class action lawsuit filed in a California state court.
Other brands, once regarded as wholesome and safe, have fallen spectacularly from grace.
Welcome to the darker side of health supplements, baby bottles, and burger buns, where lawsuits replace lullabies and PR teams are the real first responders.
Below, we explore how trusted brands tumbled from their pedestals.
When Cute Packaging Can’t Save You
Family brands sell more than just products. They’re selling comfort, nostalgia, and reliability. That’s what makes their scandals so jarring. Consumers aren’t disappointed; they feel betrayed.
Take Similac, a household name in baby formula. Its image: pastel packaging and a no-worries reputation. Behind the scenes, the story is worthy of Emmy Award status.
The Similac lawsuit alleges that Similac’s baby formula products contributed to necrotizing enterocolitis (NEC), a life-threatening illness in premature infants. NEC baby formula lawyers argue that Abbott Laboratories neglected to warn consumers about the risks of their cow’s milk-based formula in NICU settings. TorHoerman Law further adds that the omission led to severe health complications and, in some cases, the tragic loss of life, resulting in the baby formula lawsuit. For a brand that markets itself as a partner in your baby’s first year, being accused of causing serious harm is a PR catastrophe.
Brand Loyalty Doesn’t Survive a Recall
When it comes to food safety scandals, few have hit harder in South Africa than the Tiger Brands listeriosis outbreak. Between 2017 and 2018, nearly 1,000 people fell ill, and over 200 died from listeria-contaminated processed meats.
Local media reported it as one of the deadliest outbreaks in recorded history. Tiger Brands initially denied responsibility. However, their processed meat facility was later identified as the source.The landmark class action lawsuit wasn’t about meat but about trust in a national brand tied to school lunches and barbecues. Unfortunately for Tiger Brands, it wiped out profits, crushed public perception, and forced a corporate restructuring. The lesson? In the age of accountability, silence is not golden; it’s also damaging.
The Corporate Comeback
Some brands bounce back. Others become case studies in what not to do.
The Parmalat scandal remains one of the biggest business meltdowns in Europe.
In 2003, the Italian dairy giant faked billions in assets to mask massive debts. When the truth surfaced, the company’s CEO was arrested, and Parmalat was declared bankrupt. It was later restructured and partially revived.
Why bring up Parmalat in a conversation? Because dairy companies and baby formula giants operate in similar trust-based markets.
When numbers are fudged or health concerns are hidden, consumers don’t walk away. Instead, they run with lawsuits in hand.
Fast Food and Furious Public Backlash
Fast food is practically built on familiarity, but even these mega-chains mess up hard.
Remember Taco Bell’s beef that wasn’t? What about Subway’s “not quite tuna” scandal? These brands have faced lawsuits and viral backlash for misleading marketing and questionable ingredients.
The damage usually includes more than memes: legal fees, shareholder dip, and emergency rebranding. The public is forgiving if a brand is honest and transparent. If not? Get ready for a full-blown social media takedown.
Dollars and Damage Control
Scandals hit brands where it hurts most: the stock price.
A study in the Journal of Business Research found that companies embroiled in public shame involving product safety experience a drop in market value. Guess what also dives? Consumer trust.
Worse, the fallout can last years, not months. In Similac’s case, Abbott’s reputation took a hit not only from NEC-related lawsuits but from a 2022 recall involving potential bacterial contamination. The recall triggered formula shortages in the U.S., sparking parent panic and fueling skepticism across social media platforms.
Crisis PR Isn’t Optional Anymore
A decade ago, brands might have weathered scandals with a few press releases and a quiet settlement. Today, crisis PR is part of the business model.
The rise of watchdog influencers, class-action lawsuits, and digital whistleblowers means companies can no longer hide behind smiling mascots or retro packaging. One viral tweet or TikTok explainer can turn a localized issue into global outrage. Brands must be proactive, transparent, and fast. Own the mistake. Share the solution. And don’t gaslight your audience.