CNN Money reported tonight that The Kardashian sisters - Kim, Khloe and Kourtney - are being sued for $75 million for pulling the plug on their pre-paid debit card venture known as the Kardashian Kard.
Although the primary reason for the lawsuit is that the Kardashian backed out of a deal to move ahead with the pre-paid debit cards due to lots of negative publicity over the fees. The family and their legal team were worried that the bad press about the new cards could potentially topple the Kardashian empire. The lawsuit is against Kris Kardashian Jenner and the company, Dash Dolls LLC.
The $75 million represents the losses the Revenue Resource Group said it expects from the breach of contract. In addition, the company wants to be reimbursed $500,000 for out-of-pocket expenses, including the $65,000 the company said it spent throwing a launch party in New York City for the card.
For the launch party, Miller said Revenue Resource Group paid more than $5,000 for Khloe to fly first-class to the party and $7,000 for someone to do the sisters' hair and makeup -- negotiated down after Kim originally asked her hair stylist to be flown to the party for a total price tag of $12,000.
The company also paid $1,900 for an Escalade to drive them around, $6,360 for bottle service at the launch party, and covered the cost of their hotel rooms. The total cost of the party added up to more than $65,000, Miller said.
While the sisters were required to be at the party promoting the new card for at least three hours, Miller said they left the party after 55 minutes and their mother had to be called in order to get them to come back. Once they returned, "they sat in a corner and text messaged on their iPhones all night," Miller said.
Connecticut Attorney General Richard Blumenthal was one of the card's biggest critics.
Before the Kardashians cancelled the card, Blumenthal wrote a letter to the card's issuer questioning the legality of the card's "pernicious and predatory fees" and saying the card was "particularly troubling because of its high fees combined with its appeal to financially unsophisticated young adult Kardashian fans."
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