Kim, Kourtney and Khloé Kardashian Fire Back After Being Sued for Allegedly Not Promoting Their Beauty Line
The stars say the issue needs to be resolved in arbitration
The Kardashian sisters are responding after being sued for allegedly not promoting their Kardashian Beauty line.
In March, the hedge fund Hillair Capital Management sued Kim Kardashian West, Khloé Kardashian and Kourtney Kardashian for breach of contract. The relationship between the company and Kardashians began in 2014, when the investment firm put $10 million to save their makeup line after its first distributor, Boldface, went “bellyup,” according to Hillair’s lawsuit. As part of the investment, the Kardashians were supposed to “actively promote, market and support,” the line, the Hillair lawsuit claims.
But on Wednesday, the Kardashians filed a court document stating that Hillair had no intention of entering the cosmetics world, but instead “planned to make millions of dollars in exploitative loans to a distressed cosmetics company (Boldface) that had licensed the Kardashians’ names and images for use on color cosmetic products.”
The documents allege that Hillair hoped to acquire Boldface’s assets – including the Kardashian license – and then flip those assets for a profit.
The Kardashian legal document also state that any grievances Hillair has with the sisters would need to be settled via arbitration, per their original agreement with Boldface.
“Rather than take responsibility for its own failings, Hillair filed this frivolous lawsuit, seeking to shift blame to the Kardashians by conjuring up the facially absurd narrative that Hillair, a hedge fund, actually intended to shift gears and go into the cosmetic business,” the Kardashian filing reads.
It goes on to say that the Kardashians served Hillair with a notice of breach of license, and that Hillair lawsuit was “preemptive” as the company believed “it is likely to be held liable for hundreds of millions of dollars in damages to the Kardashians” under a potential arbitration.
The Kardashians are seeking to resolve the issue in arbitration and seek to stay all proceedings involving Hillair’s lawsuit. An attorney for Hillair discounts the claims.
“It speaks volumes that the Kardashians are seeking to do everything possible to ensure that the legal proceedings are shrouded in the secrecy of arbitration,” Gregory Fayer of Fayer Gipson LLP says in a statement to PEOPLE. “The errors of fact and misstatements and law in the Kardashians’ filing are too numerous to recount. The agreements on which they rely are simply not at issue in Hillair’s lawsuit, and we are confident that there is no valid basis for the Kardashians to compel arbitration.”