Kylie Jenner’s beauty company sued in fresh blow after billionaire scandaljuin 30, 2020
Kylie Jenner ‘s beauty company is being sued by another brand she’s been working alongside for years.
The legal action is a fresh blow for the Keeping Up With The Kardashians star, coming not long after she was denied accusations of faking her way to billionaire status.
The 22-year-old’s beauty brand, King Kylie, is one of three companies being sued by Seed Beauty, a company she’s been doing business with since 2016 to help produce her products.
In legal documents seen by Mirror Online, Seed Beauty is claiming that Kylie’s company’s recent deal with Coty, who she sold a 51% stake in her company for $600 million, will leak their tricks of the trade to a competitor.
The documents, filed to the Superior Court of the State of California County of Los Angeles, state: “This action is to stop Coty’s theft of Seed’s pioneering and proprietary digital-first business model that has revolutionized the cosmetics industry.
“Seed’s unique business model enables it to rapidly develop, manufacture, and promote new cosmetics through ecommerce and social media platforms. Seed does this by maintaining, ‘total control of its manufacturing process, working on everything from product development to marketing, all under one roof’.
“Seed is credited as the ‘beauty brand incubator’ that is ‘responsible for much of’ Defendant King Kylie’s and KKW Beauty, LLC’s (“KKW”) success.
“In fact, Seed Beauty formulates, makes, packages, and ships all of King Kylie’s products.
“Other media reports have commented that Seed’s quiet role in building these brands is the ‘secret sauce’ behind these brands. Seed’s tight control of these secret processes drives its ability to quickly release exciting and groundbreaking new products in the digital cosmetics world.”
The documents allege that Coty chose an “unlawful path” to “steal the secret sauce behind Seed”.
They also bring Kylie’s sister Kim Kardashian into it, making reference to her brand KKW Beauty’s recent deal with Coty, who bought a 20% stake in the company for $200 million.
The case summary continues: “It sought deals with King Kylie and KKW in violation of the close partnership with Seed. First, Coty made a $600 million investment in King Kylie, but it really 2 was a subterfuge to learn Seed’s confidential business methodologies.
“Out of deep respect for Kylie Jenner, Kim Kardashian, and the highly successful businesses Seed created with them, Seed attempted to resolve this dispute privately and repeatedly asked for assurances related to leakage of Seed proprietary information from King Kylie to Coty.
“Coty and King Kylie consistently refused to provide any assurances. When Seed got wind of a potential KKW transaction, it successfully sought and obtained an injunction against KKW and those in active concert with KKW. Undeterred, Coty announced the deal anyway, creating even more threat to Seed’s trade secret rights.
“Coty has chosen to ignore the Court order restricting the information it stole, and now it must be held accountable for its unlawful actions.”
A very similar lawsuit was filed last week against Kim’s beauty company, just days before she struck her deal with Coty, which led her to her own billionaire status.
Kylie was recently stripped of the title – the world’s youngest self-made billionaire – by Forbes after they accused her of faking her way to the status.
She denied it and her lawyer demanded a retraction, however Forbes has said it stands by its story.
Mirror Online has contacted Kim and Kylie’s representatives for comment.