F9 Brands, parent company of Lumber Liquidators and Cabinets To Go, sued Neighborhood Intelligence and CEO Marcus Lemonis for breach of contract after a failed acquisition, alleging that Lemonis made unauthorized public statements that damaged the company's reputation and financial standing.
- F9 Brands filed a lawsuit on September 25 against Neighborhood Intelligence over a failed acquisition deal and alleged breach of contract.
- CEO Marcus Lemonis issued public statements on September 8 and 9 claiming F9 was unable to satisfy closing requirements, which F9 says was a mutual decision.
- F9 alleges Lemonis disclosed confidential financial details and conveyed a misleading impression that F9 was financially distressed during a Wedbush Securities webcast.
- Neighborhood Intelligence had access to F9's trade secrets, customer data, and business strategies for at least seven months during merger negotiations.
- The lawsuit highlights Lemonis's history with businesses featured on his shows, noting that more than 50 of roughly 100 businesses featured on The Profit filed lawsuits or settled disputes with him.
Lumber Liquidators and Cabinets To Go parent company F9 Brands alleged that reality TV star and Neighborhood Intelligence (formerly known as Bed Bath & Beyond Inc.) CEO Marcus Lemonis wrongfully blamed F9 for their mutual decision to terminate a merger, according to a lawsuit filed Sept. 25.
F9, led by Lumber Liquidators founder Thomas Sullivan, is suing Neighborhood over alleged breaches of contract, including failure to consult F9 before issuing a public statement regarding the transaction. Neighborhood issued a press release on Sept. 8 announcing the termination of the acquisition, stating that “F9 was unable to satisfy all closing requirements within the contemplated timeframe.” In the same press release, Lemonis said of F9, “In this case, we determined the seller was unable to satisfy the closing conditions, which are essential to our confidence in any business we acquire.” The statement led F9 employees and vendors to raise concerns over the company’s financial stability.
Then, on Sept. 9, Lemonis—who hosts the business rescue show “The Fixer” on Fox—allegedly compounded the breach of contract by making unauthorized public statements during a Wedbush Securities webcast styled as a “fireside chat.” F9 claimed Lemonis disclosed financial details of the “mutually” terminated deal and “conveyed a misleading impression that F9 was financially distressed.”
The lawsuit outlined what it says is Lemonis’s history of making public statements that harm the businesses he deals with and disregarding contractual agreements. Lemonis hosted the reality series “The Profit” on CNBC from 2013–2021, in which he invested in small businesses in exchange for equity and management authority. “Of the roughly 100 businesses featured on the show, more than 50 filed lawsuits, engaged in mediation or settled with Lemonis over the harm they say they endured,” the lawsuit said.
During his fireside chat, Lemonis also announced Neighborhood’s plans to enter the flooring and kitchen markets “without having to buy a business.” Neighborhood’s potential pivot to floors and kitchens would put it in direct competition with Lumber Liquidators and Cabinets To Go. According to the lawsuit, this especially troubled F9 due to the fact that while merger talks were ongoing, Neighborhood had access to F9’s most sensitive trade secrets, customer data, vendor relationships and business strategies for at least seven months.
While Neighborhood Intelligence is named as the defendant—not Lemonis himself—the lawsuit said Lemonis’s conduct is central to the case after he “personally directed the public statements at issue.”
The lawsuit is the most recent event in Lumber Liquidators’ complicated history, joining the "60 Minutes" exposé into the formaldehyde content of its laminate flooring in 2015, Sullivan’s resignation in 2017, Chapter 11 bankruptcy in 2024 and Sullivan’s subsequent buy back.
