MeUndies Sues Software Developer Ordergroove Over Unusable App

MeUndies, Inc. sued software development company Ordergroove Inc. and Ordergroove LLC, seeking to rescind its contract and recover damages after Ordergroove allegedly failed to deliver on a key app promise.

The complaint filed Monday with the Los Angeles County Superior Court alleges that Ordergroove misrepresented its ability to support MeUndies’ flagship flexible subscription program. The LA-headquartered apparel company requested a jury trial in a bid to recover damages including restitution, consequential damages, out-of-pocket expenses, and lost profits in excess of $25,000.

MeUndies was supposed to pay Ordergroove a sum starting at seven figures annually to use its app for three years. But MeUndies has not and cannot use the software, the complaint said. An Ordergroove representative told Bloomberg Law the company is aware of the situation but can’t share additional information at this time.

Forbes described MeUndies’ sales strategy in 2016 as “revolutionizing the underwear business.” The strategy centers on a customizable online subscription program where members can select a specific type, style, and print of garment for the month or opt out altogether. Members can switch selections or cancel their orders until they’re processed for shipment, a level of freedom the complaint says is “unmatched in the industry” but requires complex technical processes to execute.

MeUndies had employed a software team in-house for about a decade to run its e-commerce platform. The company courted app partners in 2021 to run and manage its subscription program while initiating a move to Shopify Inc.’s platform.

Delaware-based app partner Ordergroove said prior to the contract that it could customize its software product or use existing features to support MeUndies’ flexible subscription program, according to the complaint. But the company “engaged in a bait-and-switch,” the complaint alleges.

The app Ordergroove developed couldn’t support live updates on garment selection or deselection, and daily inventory reports were delayed by as much as 36 hours, the complaint said. Ordergroove’s proposed solutions to the membership stock reservation issue either did not work for MeUndies’ program or lacked a development roadmap or deadline. Ultimately, the two parties agreed in March that Ordergroove couldn’t create a way to run MeUndies’ membership program on its app. Ordergroove then rejected MeUndies’ notice of contract termination.

MeUndies went to court earlier this year against Canadian rival Saxx US Acquisition Inc. in a back-and-forth suit battle over a patent for underwear with genital pouches.

Harris Litigation PC is representing MeUndies. Ordergroove hasn’t made an appearance in the suit.

The case is MeUndies, Inc. v. Ordergroove, LLC, No. 23STCV16670, complaint filed 7/17/23.