Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated v. Giftrocket, Inc., Tremendous, Inc., Nicholaus Baum, Kapil Kale, Jonathan Pines, Benjamin Kubic, Sunrise Banks, N.A., Giftrocket, LLC, Tremendous LLC, and Tremendous Parent, Inc.

CourtDistrict Court, E.D. New York
DecidedDecember 22, 2025
Docket1:22-cv-04019
StatusUnknown

This text of Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated v. Giftrocket, Inc., Tremendous, Inc., Nicholaus Baum, Kapil Kale, Jonathan Pines, Benjamin Kubic, Sunrise Banks, N.A., Giftrocket, LLC, Tremendous LLC, and Tremendous Parent, Inc. (Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated v. Giftrocket, Inc., Tremendous, Inc., Nicholaus Baum, Kapil Kale, Jonathan Pines, Benjamin Kubic, Sunrise Banks, N.A., Giftrocket, LLC, Tremendous LLC, and Tremendous Parent, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated v. Giftrocket, Inc., Tremendous, Inc., Nicholaus Baum, Kapil Kale, Jonathan Pines, Benjamin Kubic, Sunrise Banks, N.A., Giftrocket, LLC, Tremendous LLC, and Tremendous Parent, Inc., (E.D.N.Y. 2025).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK ----------------------------------------------------x

GRACIE BAKED LLC, WECARE RG, MEMORANDUM AND ORDER INC., and MILLERCOBB LLC, on behalf 22-CV-04019 (GRB) (VMS) of themselves and all others similarly FILED situated, CLERK

Plaintiffs, 12/22/2025 1:07 pm

U.S. DISTRICT COURT v. EASTERN DISTRICT OF NEW YORK LONG ISLAND OFFICE GIFTROCKET, INC., TREMENDOUS, INC., NICHOLAUS BAUM, KAPIL KALE, JONATHAN PINES, BENJAMIN KUBIC, SUNRISE BANKS, N.A., GIFTROCKET, LLC, TREMENDOUS LLC, and TREMENDOUS PARENT, INC.,

Defendants.

----------------------------------------------------x

GARY R. BROWN, United States District Judge: Plaintiffs Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated, bring this class action suit for damages and equitable relief, alleging, in sum and substance, that defendants engaged in a scheme to sell consumers money transfers packaged as gift cards bearing the imprimatur of certain businesses when, in fact, the cards were simply money transfers unaffiliated with those businesses. Plaintiffs bring their suit against several defendants: GiftRocket, Inc.; Tremendous, Inc.; Nicholas Baum, Kapil Kale, and Jonathan Pines (GiftRocket’s founders); Benjamin Kubic (a corporate officer); Sunrise Bank, N.A.; and GiftRocket, LLC, Tremendous, LLC, and Tremendous Parent, Inc., asserting claims under the Lanham Act, the New York General Business Law, and the common law of unfair competition. Defendant Kubic moved for summary judgment on all claims asserted against him, while plaintiffs similarly seek summary judgment on those claims. Both parties also request attorneys’ fees under the Lanham Act. For the reasons that follow, these motions are denied. BACKGROUND About fifteen years ago, defendants Nicholas Baum, Kapil Kale, and Jonathan Pines founded GiftRocket. See Pls.’ Resp. to Def.’s Rule 56 Stmt. ¶ 1 (“Rule 56.1 Stmt.”) (Dkt. #252-

1). The company’s website, GiftRocket.com, allowed purchasers to send money to a recipient and “suggest” that the recipient use the money at a particular business. See Baum Decl. ¶ 4 (Dkt. #251- 5). These “suggestions” are not binding and the money transfers do not function as gift cards. Defendants’ product can be characterized as the digital equivalent of a handwritten card saying “I suggest you spend this at Chick-fil-A” along with a $20 bill. See Sec. Am. Compl. ¶¶ 76–77 (Dkt. #137). Just as that $20 can be spent at McDonald’s, the zoo, or anywhere else, money received through GiftRocket can also be spent somewhere wholly separate from the purchaser’s preferred destination. Plaintiffs allege that, despite the nonbinding “suggestions,” GiftRocket “misleadingly

markets itself as selling gift cards,” implying that the gift cards can be redeemed only at certain businesses, and that GiftRocket is affiliated with the suggested business. Id. ¶¶ 6, 74. Plaintiffs allege that GiftRocket tricked people into thinking that they were buying gift cards for specific businesses when, in fact, “all that was purchased was just a very expensive way to transfer money.” Id. ¶¶ 78, 82.1 Plaintiffs maintain that GiftRocket’s advertising strategy “explicitly uses the term ‘gift card,’” and that this tactic amounts to a simple “bait and switch . . . misdirect[ing] consumers who are searching for real gift cards to a particular business to the GiftRocket website.” Id. ¶ 64.

1 According to the Amended Complaint, GiftRocket charged a flat $2 fee per transfer plus an additional fee of 5% of the amount of the gift. Thus, it is alleged that a $100 gift cost the consumer $7, while services such as Paypal or Venmo charge “little or nothing” for personal transfers. Am. Compl. ¶¶ 79-80. Ten years after the company’s founding, defendant Benjamin Kubic joined the business as the Vice President of Business Operations. See Rule 56.1 Stmt. ¶ 3; Kubic Tr. 15:9–12 (Dkt. #251- 7). Kubic spent the lion’s share of his time working on a separate but related product—called “Tremendous”—which also allowed purchasers to send money to designated recipients.2 See Rule 56.1 Stmt. ¶ 3–4; Baum Decl. ¶ 6. He oversaw several departments at Tremendous. See Kubic

Tr. 15:17–25. But Kubic was not firewalled from GiftRocket’s operations. He had some involvement in operating the support team for GiftRocket.com, see Kale Tr. 12:19–13:3 (Dkt. #252-9); Rule 56.1 Stmt. ¶ 15, worked with a banking partner for the business, see Kale Tr. at 51:15–20; Baum Tr. 18:5–19, 19:15–18 (Dkt. #252-20); Rule 56.1 Stmt. ¶ 15, and found an alternate provider for business data crucial to GiftRocket’s product, see Kubic Tr. 220:5–21; Rule 56.1 Stmt. ¶ 15. Kubic always had a direct supervisor at GiftRocket. Rule 56.1 Stmt. ¶ 7. Kubic played no role in the initial development of the GiftRocket product or creating the allegedly misleading “suggestion” feature. See id. ¶ 9. His arrival at the company substantially post-dated GiftRocket’s use of the phrase “gift card” in connection with its money transfer product.

Id. ¶ 11. Kubic owned shares of some of the defendant entities, though the parties offer different interpretations as to the importance of that ownership. See id. ¶ 16. Nevertheless, several facts serve to demonstrate his knowledge of the scheme and his key role in its perpetuation. First, on February 7, 2022, Kubic asked an employee “do we have any sort of page on GR letting business owners know where they can ask to have their businesses removed?” See Ex. 30 (Dkt. #252-32). That employee responded “we do not . . . I think this is essentially that’s how [GiftRocket] makes money.” Id. Later, in 2023, GiftRocket faced an existential crisis when Yelp – the entity that provided GiftRocket with the data about businesses

2 The Tremendous product did not include the allegedly misleading “suggested use” feature. Baum Decl. ¶ 6. used to generate gift card “suggestions” – withdrew its support based on complaints. Rule 56.1 Stmt. ¶¶ 62-64. While the parties offer competing characterizations of the Kubic’s role, it is undisputed that he unsuccessfully negotiated with Yelp to provide continued support and, when that effort failed, identified and secured the support of Google Places to provide continued access to data about businesses, allowing the GiftRocket gift card activity to continue. See Pls.’ Resp.

18; Ex. 43 (Dkt. #252-45); Ex. 46 (Dkt. #252-48); Kubic Tr. 220:5–223:16 (Dkt. #252-6); Rule 56.1 Stmt. ¶¶ 65-77. While facilitating this transition from Yelp to Google, Kubic wrote: As far as I can tell, Google Places . . . doesn’t explicitly prohibit the [GiftRocket] use case, but there are some general terms around misuse of IP that I’m sure they could rely on to shut us down if they wanted to. Ex. 46. GiftRocket used the Google Places data to populate its list of suggested businesses on its website. Kubic Tr. 224:9–11. At another crucial juncture, Sunrise Bank, GiftRocket’s banking partner, whose services were deemed “critical” to the operation, refused to renew its contract. Rule 56.1 Stmt. ¶ 79. Kubic unsuccessfully tried to convince Sunrise Bank to remain, led the search for a new banking partner, located SouthState Bank, and retained responsibility for maintaining that relationship. Id. ¶¶ 80-82. In July 2022, Gracie Baked LLC and WeCare RG, Inc. brought a class action lawsuit against GiftRocket, seeking “redress for Defendant’s systematic violations of federal and state unfair competition laws.” Compl. ¶ 1 (Dkt. #1). About a month later, plaintiffs filed an amended complaint adding Millercobb LLC as a plaintiff and several new defendants, including Kubic. See First Am. Compl. ¶ 46 (Dkt. #29). The amended complaint also named GiftRocket’s three founders as defendants. See id. ¶¶ 40–44. And it added Tremendous, Inc.

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Gracie Baked LLC, WeCare RG, Inc., and Millercobb LLC, on behalf of themselves and all others similarly situated v. Giftrocket, Inc., Tremendous, Inc., Nicholaus Baum, Kapil Kale, Jonathan Pines, Benjamin Kubic, Sunrise Banks, N.A., Giftrocket, LLC, Tremendous LLC, and Tremendous Parent, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/gracie-baked-llc-wecare-rg-inc-and-millercobb-llc-on-behalf-of-nyed-2025.