Kylie Jenner’s beauty brand’s parent company is facing a lawsuit over allegedly “inflating” the value of Jenner’s beauty brand and deceiving shareholders.
Coty currently owns a 51% stake in Kylie Cosmetics.
In a class-action suit, Coty shareholder Crystal Garrett-Evans argues that Coty engaged in “a fraudulent scheme and course of business that operated [to deceive] purchasers of Coty shares by disseminating materially false and/or misleading statements and/or concealing material adverse facts … about Coty’s business, operations, and prospects.”
The suit comes months after Forbes magazine accused Kylie of overinflating her brand — removing her billionaire status.
“A more realistic accounting of her personal fortune puts it at just under $900 million,” the outlet reported adding that Kylie’s team has been manipulated for years and that her accountant drafted tax returns with fake figures.
The lawsuit also claims that Coty “overpaid” for the P&G Specialty Beauty Business and Kylie Cosmetics acquisitions and that they did not properly assessing the value of the brands.