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Mr. G's posted the announcement to Facebook earlier this month.
"Litigation over the name of our diner has presented significant operational challenges, which unfortunately prevented our vision for Mr. G’s Diner from coming to fruition," the statement says. "If we do re-open, it will be under a new name."
As reported by NJ Advance Media, the lawsuit was filed by the diner's former owners and the family of entrepreneur and civil rights leader Russell Graddy on the same day of its reopening.
The suit alleges that the new owners infringed on Graddy's trademark by using the name "Mr. G's" on advertising, menus, and signage.
Mr. G's last day in business is Sunday, Sept. 29.
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