Weight Watchers Sues Over Licensing Dispute

CoolBrands International Inc., the maker of Eskimo Pie and other frozen desserts, was accused by Weight Watchers International Inc. of breaking an agreement by stockpiling ice cream products licensed by Weight Watchers.

Weight Watchers alleges in documents filed in New York State Supreme Court that Markham, Canada-based CoolBrands intended to keep a supply of Weight Watchers Smart Ones and sell them for a year after the expiration of a licensing agreement. CoolBrands “strongly disputes” Weight Watchers’ claims and plans to contest the matter in court, the company said in statement.

Weight Watchers is asking the court to prevent CoolBrands from selling Smart Ones and award unspecified compensation and punitive damages.

Shares of Woodbury, N.Y.-based Weight Watchers fell $1.80 to $36.82 on the New York Stock Exchange.