Coty purchased a majority stake in Kylie Cosmetics earlier this year at a valuation of $1.2 billion Getty ImagesSeed Beauty—the company that exclusively manufactures products for Kylie Jenner’s Kylie Cosmetics—has filed a suit against Coty, the majority owner of Kylie Cosmetics, and King Kylie, the LLC behind Kylie Cosmetics, seeking to prevent the misappropriation of trade secrets. The civil suit, filed June 30 in California’s superior court, alleges that Kylie Cosmetics knowingly shared Seed Beauty’s trade secrets and Coty knowingly accepted them. Jenner sold 51% of Kylie Cosmetics to Coty for $600 million, in a deal that closed in January. It is likely that Coty and Kylie Cosmetics will have a similar argument against Seed in this case—that its allegations are speculative and that the trade secrets Seed claims Kylie Cosmetics shared are not actually trade secrets. Coty has heralded its investments in Kylie Cosmetics and KKW Beauty as part of its efforts to right the ship.

Source: Forbes June 30, 2020 17:37 UTC