Urban Company had filed a defamation and disparagement suit in the Delhi High Court against Kent RO System against its advertisements and social media content which the former alleged made flase and misleading claims about its Native water purifiers.
Urban Company said it had filed the suit on August 11 alleging that Kent RO’s advertising campaign targeted the two-year filter life and and two-year service life features offered on its Native M0, M1, M2, M1 Pro and M2 Pro water purifiers.
It said Kent RO’s ads described these features as “marketing gimmick” and claimed that using Native water purifiers was “unsafe” and “risky” for consumers.
The matter was heard in the high court on August 12, following which Kent RO said it would pull down the advertisements that were subject of the suit and would not run other advertisements or promotional content making the same or similar claims.
Urban Company said Kent RO on August 12 was asked to remove the advertisements and social media content within 15 days.
It added that the legal matters between the two firms remain sub judice, including a patent infringement suit filed by Kent RO and Urban Company’s counterclaim against Kent RO’s patent and a tortious interference suit filed by the Urban Company against Kent RO.
Urban Company’s Native reported revenue of ₹95.28 crore in the first quarter, up 60% from the previous year’s ₹59.55 crore. Its EBITDA loss narrowed to ₹7.75 crore from ₹10.87 crore in the year-ago period.
On another note, brokerage firm UBS has initiated coverage on Urban Company with a “buy” rating and a target price of ₹180 per share, an upside of 13.5% from its previous close. It said Urban Company is going through its Blinkit moment.
Shares of Urban Company gained 6.5% to hit an intraday high of ₹168.89 apiece on Monday. The stock was up 5.7% at ₹167.71 apiece at 10.15 am. It has gained 29.6% in the past month and 27.4% this year, so far.
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