Kardashian Sisters Accused of 'Fraud' and 'Deceit' in $180 Million Lawsuit Over Beauty Line

by John Boone 12:46 PM PDT, March 22, 2016
Playing Kardashian Sisters Accused of 'Fraud' and 'Deceit' in $180 Million Lawsuit Over Beauty Line

The Kardashian sisters have been accused of not tweeting enough -- and it could cost them hundreds of millions of dollars.

Kim, Kourtney and Khloé -- and their corporations, naturally named Kimsaprincess Inc., 2Die4Kourt, and Khomoney Inc. -- have been hit with a lawsuit by Hillair Capital Management, with the company claiming the sisters did not do enough to promote its Kardashians Beauty line.

In court documents obtained by ET, Hillair accuses the reality stars of breach of contract, fraud, deceit, breach of covenant of good faith and fair dealing, and negligent misrepresentation and is asking for as much as $180 million.

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Here's the backstory: The Kardashian sisters partnered with Boldface cosmetics in 2012 to launch, what was then known as, Khroma Beauty. In the documents, Hillair claims to have stepped in to "salvage their struggling Kardashian Beauty makeup line after former distributor, Boldface, went belly up amidst legal and financial troubles."

Hillair says part of the agreement was that the Keeping Up With the Kardashians stars, with their over 100 million followers on Twitter, Instagram, and Facebook, promote the line on social media. "The Kardashians' support was, of course, absolutely essential to the success of the Kardashian-branded line," the company states in its filing.

Now, Hillair says this promo never happened.

Instead, Hillair claims that Kim, Kourtney and Khloé "almost 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 than they had struck with Hillair."

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Among other allegations in the documents are that the sisters, especially Kim, plugged other cosmetic brands and products and claim that when Khloé did attend a 2015 beauty expo in Dubai to promote the line, she ended up "screaming and cursing" and saying she "hated everything about the Kardashian Beauty products."

Hillair claims it has sunk $10 million in invested funds into the company and is also suing for the value of its equity interest, which it claims is valued between $64 and $180 million. 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."

Another product the Kardashian sisters endorsed -- Waist Gang Society's waist trainers -- was recently accused of "false and misleading" advertising in a $5 million class action lawsuit. Find out more in the video below.