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Kardashians sued for breach of contract

On Behalf of | Feb 3, 2011 | Breach Of Contract, Business Formation |

A previous post on this blog discussed a recent failed business venture of ever-enterprising entrepreneurs Kim Kardashian and her sisters, Khloe and Kourtney. The sisters had agreed to be the face of the “Kardashian Kard,” a prepaid debit card developed by the financial services company, Mobile Resource Card.

Soon after the product launched it was criticized by financial experts and public officials, including Connecticut State Attorney General and now U.S. Senator Richard Blumenthal, who lambasted the card’s hidden usage fees. The Kardashians walked away from the deal after it started to look like an endorsement would hurt their image and brand.

Now, according to THR, Esq., Mobile Resource Card has filed a lawsuit against the Kardashians for breach of contract for walking away from the product.

Mobile Resource Card claims that the Kardashians did not just sign an endorsement deal, but were also partners with the company in a joint business venture. For this reason, the company is claiming that the reality stars should share responsibility for the failure of the company.

In the contract, the Kardashians were to get a 25 percent cut of those high usage and transaction fees as well as $3 for each Kardashian Kard activated or sold, plus an advance on royalties and a signing bonus. Reportedly, the Kardashians tried to terminate their involvement in the product by e-mail, which violated the terms of the contract.

According to THR, Esq., the contract said that the sisters needed to give 30 days’ notice if they were going to terminate the contract. The only reasons it could be legally terminated were bankruptcy, failure to make payments, or lack of insurance.


Why the $75 Million Kardashian Lawsuit is Pretty Serious (The Hollywood Reporter)