Don’t mess with the Kardashians. Kourtney, Kim and Khloé Kardashian have filed a motion to compel arbitration after Hillair Capital Management LLC sued the reality stars in March for millions, claiming the sisters didn’t uphold their end of the deal to promote the Kardashian Beauty line.
The Keeping Up With the Kardashians stars argued in court documents filed on Wednesday, May 11, that the hedge fund “planned to make millions of dollars in exploitive loans to a distressed cosmetics company (Boldface),” and rather than invest in the troubled makeup business, Hillair “planned to quickly flip its assets (primarily a license agreement with the Kardashians) for a profit.”
The sisters went on to call Hillair’s lawsuit “frivolous” in the court documents, and accused the company of “seeking to shift blame” for its own failure. To accomplish this, the Kardashians alleged in the filing, Hillair made up this “absurd narrative that … a hedge fund, actually intended to shift gears and go into the cosmetic business,” then “raced to the courthouse to file this preemptive public lawsuit.”
The filing also noted that any issues are supposed to be settled in arbitration, as per their original agreement with Boldface.
The social media mavens had previously teamed with distributor Boldface for their Kardashian Beauty makeup line, but the company ran into financial trouble. Hillair then invested $10 million to help revive the makeup line, according to the Los Angeles Times. The hedge fund claimed in its lawsuit that the Kardashians were purposely not pushing the brand because they “wanted a better, more lucrative deal than they had struck,” according to court documents from the original lawsuit obtained by the New York Daily News.
Us Weekly has reached out to Hillair for comment.
The hearing for the ongoing court case is set for June 7.
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