Kim Kardashian, Sisters Chloe and Courtney Fight Back Against Lawsuit Filed By Investment Firm
May 13, 2016 10:30 AM EDT
The Kardashian sisters - Kim, Khloe, and Kourtney, are fighting back after being sued by an investment firm for breach of contract. The firm, who invest $10 million in the sisters' makeup line, filed a court document against the three of them for not promoting the make-up line.
The hedge fund Hillair Capital Management sued Kim, Khloe, and Kourtney Kardashian in March. In the civil lawsuit, Hillair alleges that the Kardashian sisters are guilty of breach of contract, fraud and deceit after the firm invested more than $10 million in their struggling make-up line, the Kardashian Beauty.
However, the Kardashian sisters are now fighting back, seeking upwards of $200 million from Hillair. Mail Online reports that the sisters alleges Hillair and its Cayman Island affiliate of false promises to take over management and control.
"Hillair had promised the Kardashians they would make all the investments necessary to grow and market cosmetics. But after a year of wasted time and efforts, it became clear that Hillair did not have the necessary capital nor desire to build the business it promised to the Kardashians," the Kardashians claimed.
Furthomermore, Kim, Khloe, and Kourtney argued that Hillair filed the lawsuit to shift blame to the Kardashians for its own failings. People quoted the filing, "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."
Previously, the Kardashian Beauty make-up line was in partnership with distributor Boldface. However, the company ran into financial troubles. That was when Hillair invested the $10 million to help the brand, as reported by Us Magazine.
As for now, the Kardashians stated that they are seeking to resolve the issue in arbitration, as per their original agreement in the partnership with Boldface. Kim, Khloe, and Kourtney seek $200 million in damage because of the valuable business opportunities they have lost because of Hillair's bad performance in keeping its promises. However, Hillair responded that they will not put up with the errors of fact in the Kardashians' filing.
The Kardashian sisters are suing Hillair, the investment firm who at first sued the sisters for not promoting its beauty line according to contract. Kim, Khloe, and Kourtney Kardashian are seeking $200 million from the hedge fund for failing to deliver its promises to distribute and support the brand.