Kourtney, Kim and Khloe Kardashian are being sued by Hillair Capital Management over their “Kardashian Beauty” makeup line.
The Keeping Up With The Kardashians stars allegedly failed to tweet about and generate buzz of their products, which caused the line to go bust and cost the company up to $180 million in lost profits. More after the cut…
The Kardashian sisters 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.
Hillair, in court documents, said it agreed to invest in the Kardashian Beauty makeup line in July 2014 “after former distributor, Boldface, went belly up amidst legal and financial troubles.” Now it claims that the reality stars failed to promote the line as they had agreed to, and the potential loss of profits is extremely large.
— Kim Kardashian fans (@KimKarnews24) March 23, 2016
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.”
Hillair claimed that it lived up to its end of the deal, but the famous sisters did not.
“The Kardashians immediately stopped marketing, promoting, and supporting the line and began courting new potential investors to buy out Hillair’s stake. In short, the Kardashians wanted a better, more lucrative deal,” court documents said.
Hillair wants its original $10 million that they invested back, as well as the amount in potential profits they could have made which they claim is around $170 million.