Kourtney, Kim and Khloe Kardashian have been hit by a $180 million lawsuit by Hillair Capital Management and are accused of not promoting their Kardashian’s Beauty line.
The company has suggested that the celebrity sisters are in breach of contract due and have accused them of fraud, deceit, breach of covenant of good faith and fair dealing, and negligent misrepresentation.
Hillair states that as part of the original agreement following it’s takeover of the Kardashian Beauty line from original distributor Boldface, the sisters were to use their heavy social media following to drive promotion of the brand and boost sales.
However, the company states that the reality stars did not uphold their end of the bargain and did no social media marketing, instead courted new potential investors.
Despite the ongoing lawsuit licensees are continuing to sell the branded line, which is stocked in Ulta and the website Kbeauty.com, and do not anticipate a fallout from the lawsuit.
One employee from licensee Haven Beauty told WWD.com, “I don’t anticipate there being any impact from the lawsuit. Haven Beauty is not a party to the lawsuit. The lawsuit is strictly between the Kardashians and the equity fund partner.”
The lawsuit reads, “Not only did the Kardashians fail to take the steps necessary to market, promote and support the line, the Kardashians took affirmative steps to delay or undermine the ability of Haven to effectively distribute the Kardashian Beauty line.”
Meanwhile Gregory Fayer, a lawyer for Hillair, said, “We are extremely disappointed that it has come to this. Hillair entered into this venture with the Kardashians with the expectation of a long, mutually beneficial relationship. Unfortunately, having poured over $10 million into saving the Kardashians’ makeup line, the Kardashians failed to hold up their end of the bargain, and Hillair was left with no choice but to file a lawsuit.”