Beyonce’s House of Dereon Sued by Manufacturer
Beyonce and her mother Tina Knowles are facing an international lawsuit for their lucrative clothing line, House of Deréon. Hong Kong based clothing manufacturer, Vier International, is suing the brand for a breach in contract. The company claims that they lost $500, 000 due to the tactics of several companies who "induced the shipment of goods to the United States with the intent to convert them or pay less than agreed upon contract price."
The principal culprits named in the suit are Donna Loren LLC and shippers HJM International, who Vier say ran the scheme. But according to WWD.com, Beyonce's House of Deréon is being named as one of the companies who participated in the scheme by making purchase orders and requesting manufacture specifications.
Vier has not taken the attempt to undercut their prices lightly. In addition to the preliminary lawsuit, the manufacturer has also filed a report under the Racketeer Influenced and Corrupt Organizations Act (RICO), a measure usually dedicated to the prosecution of organized crime units. Beyonce's ready-to-wear fashion line, House of Deréon, was launched in partnership with her mother Tina Knowles in 2005.