That is correct. Just 10 days after the episode of “Shark Tank” aired, James McDonald sued Cole, his Egger, and his partner in the business for trying to start a competing business. However, the conflict actually began long before “Shark Tank” got involved.
McDonald’s made the first batch of cake balls on June 16, 2012, according to the Dallas Morning News. Shortly after, he brought in friends named Eggers and Matt Landis, and they all founded City View Food Group LLC. Almost immediately, relations strained as the trio disagreed over hiring a new chief financial officer. landed. McDonald went ahead with the “Shark Tank” submission, and McDonald and Eggers appeared on the show on July 8 despite their disagreements.
A few days after the episode was shot, things took a turn for the worse. According to the McDonald’s lawsuit, Egger made a “non-negotiable” offer to buy McDonald’s and Landis. When they refused, Egger launched his competing website, CakeBallz.com, on August 2nd. McDonald’s subsequent lawsuit accused Egger of breach of contract and included both a temporary injunction and a permanent injunction to stop the sale of Cake His Balls. All this happened before the episode even aired.