A major costume distributor is seeking court intervention after alleging that former company members and a business competitor have violated contractual agreements and misused confidential information to gain an unfair advantage in the North American market. The complaint was filed by Rubies II, LLC and ACM Rubie’s TopCo LLC in the United States District Court for the Eastern District of New York on March 24, 2026, naming Genco International LLC doing business as Kroeger Marketing, Marc Beige, Rubin Beige, Michelle Beige, The Michelle Beige 2015 Irrevocable Trust, and The 2017 Rubin A. Beige Irrevocable Trust as defendants.
According to the filing, the plaintiffs claim that the defendants engaged in ongoing competition against Rubies by acquiring and relaunching a competing business under the Kroeger brand through Genco International. The suit alleges that this activity violates both federal law—including the Defend Trade Secrets Act—and specific provisions in an Amended and Restated Limited Liability Company Agreement dated October 2, 2020. Plaintiffs assert that these actions include marketing costumes at major trade shows across North America and soliciting orders from customers in violation of restrictive covenants.
The complaint outlines that Rubies II designs, sources, manufactures, and distributes costumes throughout the United States and internationally. ACM Rubie’s TopCo holds independent contractual rights under the same operating agreement. Genco International is described as a foreign entity with its principal place of business in Toronto but conducting business throughout all U.S. states. The individual defendants—Marc Beige (alleged to reside in Florida), Rubin Beige (New York), Michelle Beige (North Carolina), along with two irrevocable trusts—are identified as "Beige Members" subject to explicit non-competition clauses.
Central to the dispute are sections within the Operating Agreement that prohibit any "Beige Member" from engaging directly or indirectly in any competing business within states where Rubies operates for at least twelve months after their membership ends. These restrictions also bar solicitation of Rubies’ customers or employees for competitive purposes during a defined restricted period.
The lawsuit details how Genco acquired assets from Kroeger Inc. through Canadian insolvency proceedings around June 2025 before relaunching operations as Kroeger Marketing targeting North American markets. Plaintiffs allege that since this acquisition, Genco/Kroeger has marketed costumes via its website—specifically citing https://usa.kroegerinc.com—and participated in major industry events such as the 2026 New York Toy Fair and North American Halloween & Party Expo in Las Vegas.
Further allegations include claims that Genco/Kroeger employees reached out to current or former Rubies staff seeking proprietary information about products, systems, manufacturing processes, vendors, customer lists, pricing data, product roadmaps, and more—all described collectively as "Trade Secrets." Plaintiffs state they have taken reasonable measures to protect this information through secure storage practices including password authentication and two-factor authentication.
Rubies II asserts multiple legal claims: breach of contract against certain individual defendants; breach of fiduciary duty; tortious interference with contract; unfair competition under Delaware common law; misappropriation of trade secrets under federal law; and requests for equitable relief including specific performance or permanent injunctions against further competitive activity by defendants.
Plaintiffs contend they have suffered damages including lost profits and goodwill due to these alleged breaches. They seek compensatory damages to be determined at trial; disgorgement of profits; a permanent injunction enforcing restrictive covenants prohibiting exhibition or sale at U.S. trade shows; return or destruction of confidential materials; exemplary damages for willful misconduct under federal law; attorneys’ fees; interest; costs; and any other relief deemed appropriate by the court.
The complaint notes that jury trial rights are partially waived per terms set forth in the Operating Agreement but requests a jury on any issues not subject to waiver by law. Legal representation for plaintiffs is provided by David H. Greeny Esq., CampoLO Middleton & McCormick LLP based in Ronkonkoma, New York (Case No.: 2:26-cv-01736-LGD).
Source: 226cv01736_Rubies_II_LLC_v_Genco_International_LLC_Complaint_Eastern_District_New_York.pdf