Watch Out, Demi! Lovato's New Man Accused Of Drug Use, Racism & Fraud In Lawsuit

Demi Lovato has been spending her time with possible new man Henry Levy after checking out of rehab for drug abuse – but does she know about the boss from hell accusations and recent drug use claims against him?

RadarOnline.com can exclusively reveal the fashion designer was hit with an explosive lawsuit accusing him of drug use, fraud, discrimination, failure to pay overtime wages and more shocking claims!

In the court papers obtained from Superior Court, County of Los Angeles, Levy's former employee Brendan Thompson began working for Enfants Riches Déprimés on June 15, 2014 as a financial planner until his termination in April 2018.

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He claimed to have handled the company's legal matters, which stemmed from Levy's "repeated and persistent illegal and hostile behavior."

"During Mr. Thompson's employment with ERD, Mr. Levy constantly engaged in illegal drug use and made racially charged remarks concerning employees and other third parties," the court papers read.

Thompson claimed he was promoted to CFO in 2017, but failed to receive compensation in 2017 or 2018. He invested over $170,000 of his own money into the company from 2014 to 2018.

"Mr. Thompson is informed and believes, and thereon alleges, that Defendants intended that Mr. Thompson rely on the representations in order to induce Mr. Thompson to invest money and aid in running the company for Defendant's sole benefit," the filing alleged.

Thompson claimed he was subject to "constant jokes about the races of employees," specifically their Mexican heritage.

"He was subject to anti-Semitic comments about himself and 3rd parties," the former employee alleged. "He was subject to homophobic and xenophobic rants by Mr. Levy."

But the boss from hell accusations didn't end there, he claimed he wasn't paid over 40 hours of overtime and holidays. Thompson alleged he didn't receive meal or rest periods.

Thompson is seeking $5,000,000 in general damages.

As RadarOnline.com reported, Levy opened up about his past drug use to Complex magazine.

"I was, like, a f**k up in high school," he told the magazine. "I was caught up in drugs and s**t like that."

Levy completed his first rehab stint at the age of 15 when he checked into Visions Adolescent Treatment, which is a facility for underage addicts in Malibu.

He later checked into Cirque Lodge in Utah and Promises in Malibu. He attended an outpatient high school and has lived in several sober living homes.

Despite the lawsuit, a source previously told RadarOnline.com that Levy is currently sober.

"He used to have a drug problem," the insider said. "He used to like to party."

He added that he is now "sober and straight-edge."

Lovato was spotted holding hands with Levy during a dinner in Beverly Hills on Saturday, November 10. They were spotted getting cozy the next day.

The "Sober" singer completed 90 days in rehab after being hospitalized for an overdose in July.