The Starbucks Corp. is being sued by a large shopping mall operator over plans to close 78 Teavana tea stores across the city of Indianapolis.
Simon Property Group Inc. filed a lawsuit against Starbucks on Aug. 21, claiming the coffee giant had not fulfilled its lease obligations and “put its stock price above its contractual obligations, the viability of Simon and its Shopping Centers, other retailers and consumers who count on the Teavana stores,” USA Today reports.
The Seattle-based corporation acquired the U.S. tea company, known for its loose-leaf, exotic blends, for an estimated value of $620 million in December 2012. In late July, it was announced that Starbucks was closing all 379 of its Teavana stores because the mall-based chain’s “underperformance was likely to continue.” The closures were expected to mainly take place in spring next year.
In the lawsuit filed Aug. 21, Simon Property Group Inc. wrote that it was seeking temporary and permanent injunctions preventing Starbucks from closing its stores in the state.
“In order to successfully operate its shopping centers, Simon depends upon each tenant fulfilling the covenants in their respective leases,” the company said in its suit, according to USA today.:
“We are responding to the lawsuit and are working to resolve this dispute,” a spokesperson from Starbucks told Fortune. The Simon Property Group Inc. did not immediately respond to Fortune‘s request for comment.