The YouTube star Tati Westbrook and her husband, James Westbrook are being sued by their former business partner Clark Swanson. They were accused of breach of contract, fraudulent inducement and gross negligence as it relates to Tati’s vitamin line, Halo Beauty.
Why Swanson filed a lawsuit
The lawsuit is about Swanson has acknowledged owning 50% of the nutritional supplements company with both Tati and James owning the other half. However, Swanson claimed that when about to officially launch Halo Beauty in 2018, Tati and James came to him with an offer. The offering is to give them both two-thirds of the business. In exchange, the couple would willingly to use Halo Beauty as Ms Westbrook’s umbrella brand for all her beauty products. That include skincare, cosmetics, fragrance and all of other Tati Westbrook’s beauty products. Mr Swanson has agreed to all of these terms.
Swanson further proclaims that Tati has promised her fame would result in sales. Tati convinced him that the products are not the concern and she could still sell to her loyal followers.
How the disagreement begins
Apart from that, Tati has assured him that fellow YouTube famous stars like Manny Mua, Jeffrey Star, Laura Lee and James Charles would endorse her products. She proved that by alleging that they rejected remunerative advertising offers with rival competitor Sugar Bear Hair out of loyalty to her.
The argument begins when Tati and James were actively interfering with Mr Swanson’s attempt to expand Halo Beauty. Based on the lawsuit, the influencer launched a different beauty brand in 2019 under her name without acknowledgement of Swanson. Furthermore, Swanson also declared that they started to plan the launch of new products for Tati Beauty without his knowledge.
Therefore, Swanson has warned James by sending an email on March. In the email, he said Tati fragrance is a contemplated product line when they first formed Halo. Even it could be good to Halo, but it won’t be better than having Halo own and run the Fragrance piece of the business. As a co-owner of Halo, he doesn’t think that anyone can have confidence that other actions would help Halo’s operation. Thus, he asked for James reconsideration in light of Tati and his obligations to Halo.
Swanson has requested to take the Westbrooks to the trail and is seeking harm.
Tati’s lawyer said that Swanson’s declaration is baseless and offensive. The profits distributions are almost exclusively due to Westbrook’s efforts. Hence, they will defend this lawsuit till the end and are confident that the truth will be revealed one day.
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