Beyonce's House of Dereon Sued For Breach of Contract

Feb. 10 2010, Published 2:27 p.m. ET

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What comes up must come down.

Still flying high from her Grammy Awards wins and fragrance success, Beyonce has been slapped with a major lawsuit.

House of Dereon, the clothing line she and her mother Tina Knowles helm together, is being sued by its Hong Kong-based manufacturer Vier International Ltd. for breach of contract.

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In a complaint filed in the U.S. District Court in Manhattan, Vier says it lost $500,000 because the clothing company Donna Loren LLC and shipping company HJM International were "conspirators who induced the shipment of goods to the United States with the intent to convert them or pay less than the agreed upon contract price."

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Vier named two entities owned by Knowles and partners -- Beyond Productions LLC and House of Dereon -- for taking part through purchase orders and requesting manufacturing specifications.

The company included claims under the Racketeer Influenced and Corrupt Organizations Act (RICO), which is what is used in most Mafia prosecutions, but over the years has been expanded to other areas and includes civil claims by private parties like the claims here.


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