Another Loss For Lindsay! Legging Exec Tells Judge Lohan’s Bad Behavior Didn’t Kill Her 6126 Line — But $1M Fraud Claim Is Dismissed

Another day, another set of excuses from Lindsay Lohan’s camp! A former exec from Lohan's 6126 leggings line told a judge Thursday that Lohan’s arrests and rehab stays had nothing to do with the failure of the business, RadarOnline.com has learned, insisting that her distributor, DNAM, was at fault. But meanwhile, Lohan was dealt a serious blow in her lawsuit against DNAM, as the judge dismissed her claim of fraud before even going to trial!

Lohan and 6126 sued DNAM Apparel Industries last January for fraud, breach of trademark, and copyright infringement, asking for $1.1 million in damages. But according to court documents obtained by Radar, on April 14 the judge ordered that the fraud charge, and her claims for relief related to that, be dismissed. The other two still stand.

Read The Documents

And on April 24, 6126 managing member Kristi Kaylor gave a declaration insisting how she says innocent Lohan was dragged down by DNAM’s shady business practices — and not her troubled personal life.

“Lindsay’s personal issues had nothing to do with the loss of business,” Kaylor insisted in the documents, obtained by Radar. "Prior to the license agreement being signed, Lindsay had two well-documented arrests and stays in rehab and the 6126 line flourished. The first year of the license agreement with DNAM the line did 2.3 million sales. It was DNAM’s production problems and accepting bank wires for international orders and never shipping the goods nor returning the money that plagued the line.”

"Lindsay promoted the line and performed all her obligations under the license agreement,” Kaylor said, but retailers including Neiman Marcus and Federated “cancelled the line due to problems with DNAM’s short shipping orders and not honoring margin terms previously negotiated with 6126.”

In addition, she accused DNAM of ripping off both 6126 and popular mall line Bebe. Kaylor claims that she caught DNAM “using 6126 designs and putting in Bebe labels.”

“He was selling to Bebe 6126 exact duplicate garments with just a different label,” she says, even claiming she found the cut labels in the DNAM offices.

DNAM filed a counterclaim against Lindsay in May of last year, claiming that their first collection with Lohan was “very well received” in 2010. But after jail time and a rehab stay later that year, they claimed things went kaput.

“As Lohan’s legal troubles began to grow, all of which played out on the national media like a Greek tragedy, the 6126 brand quickly began to lose its luster,” the lawsuit read. “…none of the majors were willing to purchase the brand because they did not want to be associated with Lohan’s drug-addled image."