Beyoncé’s House of Deréon Accused of Breach of Contract

Beyoncé Knowles’ House of Deréon clothing line named in a breach of contract lawsuit filed by a Hong Kong manufacturer, Vier International Ltd.

Beyoncé Knowles’ House of Deréon clothing line has been named in a breach of contract lawsuit filed by a Hong Kong manufacturer.

This story first appeared in the February 5, 2010 issue of WWD.  Subscribe Today.

In a complaint filed in U.S. District Court in Manhattan Monday, lingerie and women’s apparel maker Vier International Ltd. said New York apparel firm Donna Loren LLC and Brooklyn shipping firm HJM International were “conspirators who induced the shipment of goods to the United States with the intent to convert them or pay less than the agreed upon contract price.” Vier alleged that “defendants Beyond Productions LLC and The House of Deréon were parties to the breach and conspiracy providing purchase orders and specifications of manufactured goods.”

The suit didn’t spell out the relationships among the companies. Isaac Assa, listed in the suit as a principal of Donna Loren, said he had no knowledge of the case. HJM said it had no comment. House of Deréon did not return a call seeking comment. Beyond Productions is the line’s brand manager. Vier also includes claims based on the Racketeer Influenced and Corrupt Organizations, or RICO, Act and fraud and says it lost more than $500,000 because of the defendants’ actions. It is seeking unspecified damages and legal fees.