Carl’s Jr. Files Cross-Complaint Against GB Foods

CKE Restaurants Inc. has filed a cross-complaint against GB Foods 10 days after the Mexican fast-food restaurant operator filed a $100-million lawsuit against CKE.

CKE, which owns and operates Carl’s Jr. restaurants, wants the court to rule that its “dual-concept” restaurants--selling both Carl’s Jr. and Green Burrito menu items--do not violate any agreement with GB Foods and do not constitute a breach of contract.

CKE also accuses GB Foods of damaging its reputation by making public statements that CKE had stolen trade secrets.

In its lawsuit, filed in Los Angeles County Superior Court, GB Foods alleges that CKE copied Green Burrito’s formula when it started its Picante Grill Mexican menu as an experiment at a Carl’s Jr. restaurant in Orange.

CKE responded in its counterclaim that the Carl’s Jr./Green Burrito concept, since it was developed jointly, belonged to both parties and is not a trade secret of either.