Former Frito-Lay Janitor Says He Invented Flamin' Hot Cheetos, Sues Company For Defamation: Alleges 'Open Racism And Blatant Lies' Have Set Back His Career
Portfolio Pulse from Benzinga Neuro
Richard Montañez, a former janitor at Frito-Lay, has filed a defamation lawsuit against PepsiCo Inc. (NASDAQ:PEP) and Frito-Lay, claiming he invented Flamin' Hot Cheetos and that the companies' false information and alleged racism have damaged his career. The lawsuit follows a Los Angeles Times article that discredited Montañez's claims, leading to a decline in his public speaking and consulting opportunities. PepsiCo is also facing other challenges, including weaker-than-expected revenue and product recalls.
July 26, 2024 | 5:33 am
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PepsiCo Inc. (PEP) is facing a defamation lawsuit from former Frito-Lay janitor Richard Montañez, who claims he invented Flamin' Hot Cheetos. The lawsuit alleges that false information and racism have damaged Montañez's career. This comes amid other challenges for PepsiCo, including weaker-than-expected revenue and product recalls.
The lawsuit could negatively impact PepsiCo's reputation and investor sentiment, especially given the allegations of racism and false information. This adds to existing challenges like weaker-than-expected revenue and product recalls, potentially leading to short-term stock price decline.
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