Hillair Capital Management reportedly claims that it invested $10 million into the Kardashian sisters' makeup line, "Kardashian Beauty," after their former business partner, Boldface, went under, according to TMZ. The company is now seeking up to $180 million (their estimated profit loss) from the Kardashians, which includes the original $10 million they invested.
The Huffington Post received the following statement from Michael Kump, a litigator representing the Kardashians in the case, via email:
This complaint is an obvious attempt to create leverage by hedge fund operators who took over the Kardashians’ cosmetics brand. 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.
The drama over the beauty line started back in 2012 when the reality TV stars partnered with Boldface to launch a line called "Khroma Beauty." After a trademark dispute over the word "Khroma," the brand was forced to change its name to "Kardashian Beauty." Amid the legal mess, Boldface was apparently struggling to stay afloat, according to TMZ, and that's where Hillair came in.
In court papers, Hillair Capital Management maintains that it "agreed to put up millions of dollars to help the Kardashians salvage their struggling" beauty line, and claims the sisters failed to actively promote their own brand, Gossip Cop noted. The sisters are also being accused of breach of contract, fraud and deceit and negligent misrepresentation, among other things.