Photo courtesy of Popdust.
Summary: An investment company is suing the Kardashian sisters for allegedly failing to promote their beauty brand, Kardashian Beauty.
The Kardashians are known for a lot of things—their asses, one sex tape, their part in the O.J. Simpson trial, etc.—but Kardashian Beauty is not on that list apparently. According to The Huffington Post, a hedge fund is now suing the girls for $180 million because they invested in the brand, which they said the girls never promoted.
Hillair Capital Management is suing Kim Kardashian, Khloe Kardashian, and Kourtney Kardashian. They claim in 2012 they invested $10 million into the business after they took over the makeup line from Boldface, which went under. Under Boldface’s partnership, the makeup line was called Khroma Beauty but due to a trademark dispute in 2014, they rebranded to Kardashian Beauty. The trademark fight left Boldface fighting to stay afloat so Hillair stepped in with their investment.
In their lawsuit, Hillair said the sisters failed to promote their own brand and thus caused its failure. They are suing the three for breach of contract, fraud, and negligent misrepresentation; and they are seeking not only their initial $10 million investment but potential profits lost.
According to PEOPLE, Hillair said the Kardashians not only stopped marketing their line, but they also sabotaged Kardashian Beauty. They claim the Kardashians sought other investors to buy out Hillair because they were always wanting a better deal, and that’s why they neglected their duties. Additionally, they took steps that conflicted with Kardashian Beauty. Kim got involved with a rival makeup company, Charlotte Tilbury, and created a lipstick shade called “Kim KW.” In 2015 at a beauty conference in Dubai, Khloe insulted the brand publicly, saying she “hated everything about the Kardashian Beauty products and appearance.”
The Kardashian’s lawyer Michael Krump issued a statement:
“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. The lawsuit is a disgrace. It is a jumble of false accusations which will be exposed as lies.”
Meanwhile, their half-sister Kylie Jenner’s lip kits are a monster success so at least someone in their family’s doing well in the makeup department.
Source: The Huffington Post