It seems not everyone is a fan of the Kardashians, with an investor from the Kardashian Beauty range filing a $US180 million lawsuit against the famous brood.
On Monday, Hillair Capital Management filed the suit in which it accused Kim, Khloe and Kourtney Kardashian of fraud and breach of contract. Hillair claims it invested millions of dollars into Kardashian Beauty back in 2014 to help the company after its former distributor Boldface underwent major financial troubles.
According to Hillair, it was agreed funding would continue the distribution of the line. In return, the Kardashian sisters would carry on actively promoting the beauty line. But Hillair discovered the Kardashians were courting potential new investors to buy them out and claims the family has threatened to walk away from the deal, trademark in tow.
They comment: “The Kardashians' support was, of course, absolutely essential to the success of the Kardashian-branded line and was a fundamental premise of the parties' bargain. In short: the Kardashians wanted a better, more lucrative deal than they had struck with Hillair after the money to continue the line was already committed, and they used their ability to withhold their support of the line to attempt to force Hillair into a buyout of its interest.”
The Kardashian trio are refuting all claims, with their attorney Michael Kump commenting: “This complaint is an obvious attempt to create leverage by hedge fund operators who took over the Kardashians’ cosmetics brand.The Kardashians have suffered enormous damages as a result of the many failures and breaches created by the operator’s mismanagement of the company.”
