Kylie Jenner's cosmetics partner sues Coty after investment

[CHICAGO] Seed Beauty, the company that helped launch cosmetics lines for Kylie Jenner and Kim Kardashian West, is suing Coty for allegedly stealing trade secrets while investing in the famous family's businesses.

Coty, which owns brands such as CoverGirl and Sally Hansen, gained unlawful access to Seed's proprietary strategies for developing and growing cosmetics lines through its recent US$600 million deal to take a majority stake in Ms Jenner's company, according to the suit filed Tuesday in Los Angeles. The action comes after Seed Beauty won an injunction this month preventing Ms Kardashian West from sharing trade secrets in a separate deal with Coty.

The latest filing broadens the legal battle over the Kardashian family's growing cosmetics empire. Coty is betting its fortunes on the reality-television clan's enduring appeal, investing US$200 million this week in Ms Kardashian West's line and taking the earlier stake in Ms Jenner's business - brands that were both started with the help of Seed Beauty.

Coty didn't comment on the suit. Representatives for Ms Jenner's management company didn't immediately respond to a request for comment.

Seed Beauty, which partners with celebrities to develop and distribute cosmetics brands, said in the filing that Coty's investment in Ms Jenner's brand "was a subterfuge to learn Seed's confidential business methodologies". The Oxnard, California-based company also named King Kylie and HFC Prestige Products in the suit.

BLOOMBERG

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