The now-defunct Kardashian Kard is long gone, but the ghost of one of the few business deals to fall through for sisters Kourtney, Kim, and Khloe Kardashian has come back to haunt the publicity-happy trio. On Friday, the socialite/reality stars were hit with a $75 million lawsuit for allegedly breaking their contract with the company behind their controversial prepaid card, TMZ.com reports.
The K’s initially promoted the card that bore their names but quickly abandoned it after it came under fire from Connecticut Attorney General Richard Blumenthal and others in the finance industry for its bevy of hidden fees. The card reportedly cost $9.95 to own and boasted an additional monthly payment of $7.95.The card also charged fees for services like ATM withdrawals, customer service phone calls, and card cancellations. Consumers were saddled with an additional $1.50 just to add funds.
The girls quickly jumped ship on the deal, unhappy about the “negative spotlight,” that surrounded the card after Blumenthal launched an investigation into its charges and whether they violated a state gift card law designed to eliminate “pernicious and predatory fees.”
In the letter, obtained by TMZ, lawyers for The Kardashians wrote: “The Kardashians have worked extremely long and hard to create a positive public persona that appeals to everyone, particularly young adults.” The lawyer said that the investigation “threatens everything for which [The Kardashians] have worked” so the family has decided to “terminate the agreement… effective immediately.”
The Kardashian Kard was taken off the market in November.
In the suit filed in Fresno, California, Revenue Resource Group — manufactuters of the Kardashian Kard claimed the reality TV sisters did not honor their two-year agreement to endorse the card, costing them millions to reimburse clients
Approximately 250 suckers — er — we mean customers who signed up for the card would be notified that their cards would be deactivated after 30 more days and receive refunds for any balances and fees they had incurred. The Revenue is also seeking damages over the bad publicity it received.
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