Judge drops fraud suit from man who says he invented Flamin’ Hot Cheetos

SANTA ANA, Calif. (CN) — Richard Montañez says he created Flamin’ Hot Cheetos 36 years ago as a janitor at the Frito-Lay plant in Rancho Cucamonga — a rags-to-riches success story that led him to a vice president position at the company, two book deals, an award-winning movie, a legendary status in the Latino community and a semi-lucrative speaking career.

But four years ago, an L.A. Times article cost him everything, he claims.

A federal judge on Wednesday dismissed Montañez’s lawsuit against Pepsi Co. and its subsidiary Frito-Lay over statements the company made to the L.A. Times implying that Montañez may not have invented its popular product.

In his 15-page order, U.S. District Judge John W. Holcomb ruled that Montañez’s claims of fraud, defamation, unjust enrichment and other violations of state law were largely deficient or lacking “factual support.”

“In sum, because Montañez has not demonstrated that he is likely to succeed on any of his claims for relief, defendants’ motion to strike is granted,” the Donald Trump appointee wrote.

However, the judge said he would allow Montañez a chance to fix his lawsuit, stating that the case’s shortcomings could be cured by claiming additional facts.

Montañez sued his former company after it told the L.A. Times that it couldn’t verify his narrative around the creation of the popular Cheeto flavor.

The disputed inventor claims that the “false and misleading” statements have cost him several professional opportunities and undermined his credibility as a full-time motivational speaker, a career he was pursuing shortly before the article was published.

“None of our records show that Richard was involved in any capacity in the Flamin’ Hot test market,” Frito-Lay told the Times in a statement.

“That doesn’t mean we don’t celebrate Richard,” it continued, “but the facts do not support the urban legend.”

The statements were later published in an article titled: “The man who didn’t invent Flamin’ Hot Cheetos.”

Five days after the article was published, Frito-Lay issued a statement clarifying that Montañez’s contributions were “far from being an urban legend” and said the information it shared with the L.A. Times had been misinterpreted.

“The information we shared with the media has been misconstrued by some, which resulted in confusion around where we stand, a range of emotions among our employees and consumers and a strain on our valued friendship with Richard Montanez and the Latino community,” the company said.

In court filings, Montañez stood by his claims, stating his former company** “promised to continue to support, and to continue to tell the true story” of how he created Flamin’ Hot Cheetos, even though they intended all along to discredit and abandon him.

However, the judge wrote that none of Montañez’s claims were enough to support his fraud claims and even went a step further, saying that the people he claims have betrayed him have been his greatest supporters in the wake of the article.

“To the contrary, Montañez alleged that defendants’ executives and employees who made the allegedly false promise to support him have in fact supported Montañez — including by making public statements in his defense and by continuing to credit him as the creator of Flamin’ Hot Cheetos,” Holcomb said.

Montañez referenced several of these statements in his lawsuit.

“My guess is there are 100’s [sic] of us who could corroborate Richard’s story!!!" Leah Box, an apparent former co-worker of Montañez, said on social media.

But, according to Montañez, the damage was done. His career as a motivational speaker was once easy after decades of press tours organized by Frito-Lay touting his invention of Flamin’ Hot Cheetos.

“Consumers are not just buying Flamin’ Hot Cheetos — they are buying Mr. Montanez’s inspirational story,” the former executive said in his lawsuit.

But after the article was published, he says his speaking opportunities dried up, and bookings decreased significantly.

Montañez is seeking an order barring Frito-Lay from making any further statements that he didn’t invent Flamin’ Hot Cheetos, as well as damages to be determined at trial.

Montañez will have until June 13 to repair his lawsuit and file an amended complaint with the court. If he doesn’t, the court will dismiss the lawsuit for good.

This case was filed in the Central District of California.

Flamin’ Hot Cheetos were launched by Frito-Lay in 1992. Since 2007, the company’s former CEOs have expressly and publicly credited Montañez with the product’s invention.