Rebel Creamery, whose ice cream is sold at Walmart, Kroger and other grocery stores nationwide, has filed for Chapter 11 bankruptcy amid a trade-dress dispute with competitor Van Leeuwen.

According to a bankruptcy filing on Aug. 14 in the U.S. Bankruptcy Court for the District of Utah, Van Leeuwen is listed as Rebel’s unsecured creditors with a nearly $24 million claim stemming from the dispute. Rebel listed the claim as “disputed” and noted that the judgement is under appeal.

The bankruptcy filing comes less than a month after U.S. District Judge Eric Komitee ruled that Rebel had intentionally infringed and diluted Van Leewuen’s trade dress through its ice cream packaging.

In a July 16 memorandum and order, Komitee said “the evidence at that trial left no doubt that Rebel infringed and diluted Van Leeuwen’s trade dress and did so intentionally.” Van Leeuwen originally sued Rebel in 2021, alleging the company’s packaging copied the appearance of its ice cream pints.

Court records show Komitee describe Van Leewuen’s packaging as “monochromatic, pastel cardboard packages with minimalist designs and black cursive script.” He adds that Rebel uses “a near-identical color scheme and script on their packaging, with slight design differences to convey dietary information.”

Komitee ordered Rebel to stop selling products in this packaging and required the company to redesign its packaging. Rebel appealed Komitte’s ruling on Aug. 12, according to court records. Van Leewuen sought over $36 million in Rebel’s profits, but the court reduced the reward to just under $24 million.

Court filings do not establish that the Van Leeuwen judgment was the sole cause of Rebel’s bankruptcy filing.

Rebel Creamy ice cream was founded nearly a decade ago

According to the company’s website, Rebel’s ice cream, branded as a keto-friendly option, is the “lowest glycemic index ice cream in the market.” The company says 85-90% of the calories in its ice cream come from quality animal fats and says it usually uses zero glycemic fibers and sweeteners.

Rebel was founded by Austin and Courtney Archibald in Utah in September 2017, and the couple ran a Kickstarter crowdfunding campaign in December 2017 that ultimately raised $80,000, according to the company’s website.

The company sells its ice cream to retailers across the country and operates a chain of ice cream parlors in more than a dozen states.

Gabe Hauari is a national trending news reporter at USA TODAY. You can follow him on X @GabeHauari or email him at Gdhauari@usatoday.com.