Rival ice cream maker claimed Rebels packaging was too close to its own
Rebel Creamery filed for Chapter 11 bankruptcy protection after a federal court ordered it to turn over nearly $23.8 million in profits to rival ice cream company Van Leeuwen.
A federal judge found that Rebel intentionally infringed and diluted Van Leeuwens distinctive packaging trade dress and ordered Rebel to redesign its ice cream pints.
Rebel, whose low-carb ice cream is sold by major retailers including Walmart, Target, and Kroger, listed both assets and liabilities between $10 million and $50 million in its bankruptcy filing.
Rebel Creamery has filed for Chapter 11 bankruptcy protection, less than a month after losing a long-running legal battle with rival ice cream maker Van Leeuwen that resulted in a nearly $23.8 million judgment.
The Utah-based maker of low-carb ice cream filed for bankruptcy in the U.S. Bankruptcy Court for the District of Utah, according to published reports. Rebel listed between $10 million and $50 million in assets and the same range in liabilities.
The bankruptcy follows a July 16 ruling in Van Leeuwen Ice Cream LLC v. Rebel Creamery LLC. U.S. District Judge Eric Komitee found Rebel liable for trade dress infringement under the federal Lanham Act, as well as infringement, unfair competition, and dilution claims under New York law.
A 2021 lawsuit
Van Leeuwen sued Rebel in 2021, alleging that its competitor had copied distinctive elements of its ice cream packaging. The dispute centered on features including monochromatic pastel-colored pints and lids, prominent black script lettering, and a minimalist overall design.
Following a bench trial, the court concluded that Rebel's packaging was likely to cause confusion with Van Leeuwen's trade dress and that the infringement was intentional. The judge permanently barred Rebel from selling products with packaging likely to be confused with Van Leeuwen's and ordered the company to redesign its packaging.
The financial consequence was substantial. Van Leeuwen was awarded $23.785 million of Rebel's profits from sales of the infringing ice cream pints.
Rebel has filed an appeal
Rebel has disputed allegations that it deliberately copied Van Leeuwen's design. The company appealed the judgment on Aug. 12, two days before filing for Chapter 11 protection, according to reports. The bankruptcy proceeding puts pending litigation against Rebel, including enforcement of the Van Leeuwen judgment, on hold while the company seeks to restructure.
The legal dispute dates to April 2021, when Van Leeuwen filed its complaint in the Eastern District of New York. Van Leeuwen argued that its packaging had developed a recognizable identity in the ice cream market and that Rebel's competing products adopted a confusingly similar appearance.
Rebel's bankruptcy does not necessarily mean the brand will disappear. Chapter 11 allows businesses to continue operating while reorganizing their finances, subject to bankruptcy court oversight. For Rebel, however, the filing comes as it faces not only the multimillion-dollar judgment but also the expense and operational challenge of changing packaging affected by the court's injunction.
Rebel products have achieved broad national distribution, including placement at Walmart, Target, and Kroger. The bankruptcy case will now determine how the company addresses its debts and other obligations while its appeal of the Van Leeuwen ruling proceeds.
Photo By CNET
Posted: 2026-08-17 12:55:33
















