Tati Westbrook Being Sued By Her Business Partner
More fuel to makeup drama.
Beauty guru, Tati Westbrook and her husband are being sued by her business partner Clark Swanson, the co-founder of her vitamins company, Halo Beauty. He made allegations of fraud, negligence, and breach of fiduciary duty.
A Limited Liability Company (LLC) is a business structure for private businesses. LLCs are a combination of corporations and partnerships with flexibility in taxes and other benefits. It is easy to start an LLC in the USA when it comes to setting up a new business.
Swanson originally owned half of the shares in the company but allegedly, he gave Tati and her husband 33.33% each, which would give them major control in Halo Beauty. In exchange, Tati promised to expand Halo Beauty which would include skincare, cosmetics, and other products.
Westbrook did actually launch a makeup line but she did so outside of Halo Beauty, as Tati Beauty instead, which left Swanson out of the deal.
The lawsuit also suggests that Westbrook described her followers as so loyal that she could sell them “shitty products.” Additionally, it claims that the biggest beauty guru, Jeffree Star, revealed that Halo Beauty's top competitor, SugarBearHair, had offered him $200,000 to promote their product. He rejected the offer, though.
SugarBearHair was also at the center of the big makeup gurus drama between Westbrook, Charles, and Star.
Westbrook had not responded to accusations yet.