Tuesday, June 14, 2011
Lawsuit tossed over prepaid card fiasco
A superior court judge in Fresno, Calif., threw out a $75 million breach of contract lawsuit filed against the Kardashian sisters for pulling their support from the infamous prepaid Kardashian Kard. Superior Court Judge Jeff Hamilton said attorneys for Revenue Resource Group LLC failed to prove they could win their case against the reality TV celebrities.
The MasterCard Worldwide-branded loyalty card was launched Nov. 9, 2010, and terminated Nov. 29, 2010, when Dash Dolls LLC, the company run by Kim, Khloe and Kourtney Kardashian, backed out of the endorsement deal it inked with RRG following criticism by Connecticut Attorney General Richard Blumenthal and the nonprofit consumer advocacy Consumers Union on the fees charged on the Kardashian Kard.
Blumenthal said the card included an annual fee of $99.95 and a monthly fee of $7.95 that kicked in one year after activation, as well as ATM withdrawal, bill pay, service center and cancellation fees.
The June 7, 2011, ruling said RRG argued unsuccessfully that that they lost other celebrity endorsements because the Kardashians pulled out of the deal. The ruling also stated the sisters could not be sued for voicing concerns about the prepaid card because the claims would violate their First Amendment rights.
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