Kim Kardashian’s money woes could be going from bad to worse. It wasn’t that long ago that her hubby Kanye West was claiming to be Dhs194m in debt, and now Kim’s in danger of having to pay out more than Dhs660m.
The Kardashian sisters, Kim, Kourtney and Khloé, are being sued for $180m (Dhs661m) in lost profits by an investment company over a failed make-up line. The breach of contract dispute centres on the sisters’ deal with Boldface Group Inc, the make-up company that co-owns Kardashian Beauty. The court action is part of a long saga for the cosmetics range. In 2014 Boldface was bought by Hillair Capital Management, which allegedly invested $10m (Dhs36m) into the venture, after a costly trademark dispute that saw the sisters’ debut range rebranded from Khroma Beauty to Kardashian Beauty. Now the company claims the TV stars have not adequately promoted the business, causing it to fail, and are seeking to recoup its costs, initial investment and $180m of lost profits.
Hillair also alleges the Kardashian sisters deliberately sabotaged the deal in order to open the door to a “better, more lucrative deal.” After failing to secure new investors, the sisters are then alleged to have tried to pull the Kardashian name from the products. Filing its claims in Los Angeles, the company’s court papers state it “agreed to put up millions of dollars to help the Kardashians salvage their struggling” line. Yet the sisters failed in their duties as “the faces of the line” to “actively promote, market and support the line.”
Fraud & Deceit
The brand’s website states the sisters are “the creators, ambassadors and faces of this new make-up line, the Kardashian sisters embody beauty, style and fashion in a manner that is desirable.” The mid-price make-up range includes lip, eye, face and nail products. However, in 2013 the sisters filed a suit claiming they were “not involved in running Boldface – they’re not part of its management, nor are they agents, employees, officers or directors of Boldface,” after they objected to the rebrand of their range from Khroma to Kardashian Beauty. The reality stars have been accused of breach of contract, fraud and deceit as well as negligent misrepresentation