Gossipcop.com: Kim, Kourtney, and Khloe Kardashian are being sued by Hillair Capital Management over their .
In 2012, the sisters teamed up with Boldface to launch a makeup collection under the name “Kardashian Khroma.” They were later forced to change the name to “Kardashian Beauty” due to a trademark dispute with the word “Khroma.” But when Boldface encountered financial problems, Hillair bought the company in 2014 and put $10 million into the venture with the Kardashians as a joint owner.
But Hillair now claims the reality stars refused to promote the line, causing it to fail. The management firm maintains in its court papers that it “agreed to put up millions of dollars to help the Kardashians salvage their struggling” line, only to have the trio allegedly damage the brand themselves, even though they were to be the “faces of the line, and actively promote, market and support the line.” The Kardashians are accused of breach of contract, fraud and deceit, breach of covenant of good faith and fair dealing, breach of fiduciary duty, promissory estoppel and negligent misrepresentation.
In the complaint, Hillair stresses that “all parties understood that the Kardashians’ full support and cooperation was essential to the success of the Kardashian-branded “Kardashian Beauty” line.” And highlights the fact that “the Kardashians wanted a better deal than they had struck with Hillair. Towards this end, they failed and refused to properly market and promote the line in the hope that a more lucrative financial deal would materialize. It never did.”
The lawsuit also recognizes Kim’s recent involvement with a competitive makeup line, lending her name to a new Charlotte Tilbury “Kim KW” lipstick shade. And alleges that Khloé stated publicly at the Beauty World exhibition in Dubai in 2015 that she “hated everything about the Kardashin Beauty products and appearance.”
Hillair is seeking to recoup not just its $10 million investment, but also lost profits. That’s estimated to be up to $180 million. The company alleges the Kardashians purposefully sabotaged the contract in hopes they could get a “better, more lucrative deal” elsewhere, but never found someone to buy out Hillair, and instead threatened to pull their names from the products.
The plaintiff, which filed its claims in Los Angeles on Monday, wants a jury trial, though Gossip Cop suspects the matter will be settled before it gets to that point. Gossip Cop reached out for comment on the lawsuit but did not immediately hear back.
UPDATE: In the docs, Hillair writes, « After acting in good faith for over a year and a half to support and finance the venture with the Kardashians while the Kardashians did nothing but undermine it, Hillair was finally left with no choice but to bring this action. »
Meanwhile, Kim’s attorney has called the lawsuit a « disgrace. »
« This complaint is an obvious attempt to create leverage by hedge fund operators who took over the Kardashians’ cosmetics brand, » Michael Kump told ET in a statement. « 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. »