Some contestants leave Shark Tank without a deal. But apparently there is a growing number of inventors who lose money by appearing on Shark Tank. Lori Cheek appeared on the reality TV show, and did not receive the investment she was hoping for. Nonetheless, she put in the hard work on her own, and successfully launched a new dating app. But Lori almost lost her business a second time when she was sued by a competitor.
Lori Cheek was sued by a competitor after she appeared on Shark Tank. And apparently she is not the only inventor to end up with a legal battle. According to the New York Post the dating business, called Cheek'd, would allow clients to pass out business cards to people they would like to ask out, but are too scared to invite directly. The business card features a code that would lead the person to a website featuring the pursuer's dating profile. And thus Cheek'd combines online dating with real life encounters.
The ABC Sharks rejected Lori's idea, but she put in the hard work and sacrifices to launch her business on her own. But Lori had to overcome a second obstacle before her business could thrive. According to Forbes a lawsuit was filed against Lori because a competitor saw her episode on TV. She explained, "A man I’ve never met was watching a re-run of my Shark Tank episode on CNBC a few years ago and claimed I stole his idea and now I’m rich and famous." But the man claimed he had a connection to Lori, and that connection was how his idea was stolen.
Lori's competitor had a theory about how his idea could have been stolen. According to Forbes, the man who sued Lori claims that he told his therapist his idea for a new dating business. The competitor believes that his therapist is a friend of Lori's, and revealed the idea to her. How did Lori respond to the allegations?
Lori Cheek maintains that her idea was original, and that she does not know the bitter competitor or his therapist. Lori beat the case, but it came at an expense. Forbes reports that it took 10 months of legal proceedings, and $50,000 of legal expenses before a judge threw the case out. According to Forbes, Lori was prepared to put the business on the chopping block if the lawsuit gained traction. Lori explained, "If the case weren’t dismissed we were considering filing bankruptcy and liquidating the business, as it could have gone on for years." Luckily the courts sided with Lori, and she did not even have to go to trial.
Yet the nightmare is not quite over. Lori was served with a second lawsuit for defamation of character. According to the New York Post the bitter competitor also accused Lori of badmouthing him on social media. The results of that case have not yet been reported by the media. But even if Lori beats the second charge, it will probably come at an expensive price.
Lori Cheek wanted to know if anyone else shared her experience. According to Forbes, she went to Facebook and created a post about her ordeal to a private group of Shark Tank participants. Several other people came forward and shared that they too had been sued after their episode was aired on national TV. Forbes is now working to equip inventors and business professionals with more legal knowledge so that they can prevent this trend from growing. And Lori Cheek did gain some leverage from her first legal battle. She posted on Twitter that she is going after her accuser to recover legal fees.
Lori Cheek won her first lawsuit, but she may not yet be in the clear. Nonetheless, it seems as if the most difficult part of her ordeal is over. Lori learned that the exposure she received from pitching her business on national television actually opened her up to attacks from her competitors. Now that she has come forward about her experience, Lori is trying to make sure that other Shark Tank contestants don't suffer the same fate. It turns out the price of fame is greater than the cost of business.