Rascals Founders Face Tough Cross-Examination in High Court Trial

The ongoing trial concerning the Rascals nappy business has intensified as Keith Taylor, the patriarch of the family that founded the company, underwent rigorous cross-examination on Friday. This session followed his comprehensive brief of evidence submitted at the High Court in Auckland on Thursday. The case, which began in 2021, involves claims made by the now Zuru-owned Rascals against former partners and a group of businessmen who acquired a competing diaper brand shortly after Zuru purchased the Taylor family’s stake in 2020.

Keith Taylor’s testimony sharply contrasted with that of billionaire Nick Mowbray, co-founder of Zuru. Mowbray testified about the viability of Rascals prior to Zuru’s involvement, which raised questions about the circumstances surrounding the acquisition. Taylor’s evidence emphasized the family’s perspective on the company’s performance leading up to the buyout.

Allegations and Settlements

The legal battle has seen proceedings against Keith Taylor and his son Grant Taylor settle just before the trial commenced. They faced allegations of breaching a restraint provision and disclosing confidential information. This aspect of the case has now closed, allowing the focus to shift to the JJK Group, which Zuru claims received confidential information that facilitated its acquisition of the struggling nappy brand Treasures.

Zuru is pursuing over $75 million in compensation and damages, asserting that the sharing of sensitive data has significantly impacted its business operations. The implications of this trial extend beyond financial losses, potentially affecting the competitive landscape of the nappy industry.

As the trial unfolds, both sides are expected to present further evidence and arguments. The outcome may set a precedent for similar disputes in the consumer goods sector, particularly regarding the handling of confidential information in business transactions.