Leggo My Escrow; Two years after the deal, the former Gardenburger owner is suing Kellogg.(Water cooler)

Byline: Editorial Staff

The former owner of meatless food maker Gardenburger is suing Kellogg Company, claiming that the food giant illegally retained the $10 million in escrow that was established as part of the 2007 sale of the company.

The lawsuit has turned into a pitched battle about sanitation, as Kellogg, in claiming the funds, cited that it had to improve the facility forcing it to withdrew Gardenburger from the market.

Private equity firm Annex Holdings, meanwhile, contends that the facility passed third-party and government sanitation audits prior to the sale, and in a press release, pointed to Kellogg's own history with product recalls.

"We are surprised that Kellogg is seeking damages for products that Kellogg admittedly manufactured and sold," Annex's legal counsel, …