NEW YORK — Beyoncé Knowles faces allegations that she violated a contract related to the founding of her House of Deréon label.

Greg Walker, a businessman based in New York, filed a lawsuit in Supreme Court in New York alleging that the pop star and actress neglected to pay him money he was owed for helping her find a licensing contract and is asking for $1.5 million in damages. The lawsuit was filed against Knowles and Wear Me Apparel, which does business as Kids Headquarters, on July 14 but was only recently obtained.

According to court documents, Walker alleged that he, Knowles, and her mother and agent, Tina Knowles, entered into an agreement in August 2003 that Walker would help them find a licensing opportunity similar to the Sean John line established by Sean Combs. Walker’s obligation under the contract was to obtain proposals and bring them to Beyoncé Knowles. According to court documents, Walker facilitated a relationship between Knowles and Wear Me Apparel. Walker received $25,000 from Knowles in July 2004 and an additional $85,000 from Wear Me Apparel between January and June 2004 as part of that contract, according to the lawsuit.

Subsequently, Knowles and Wear Me Apparel formed Beyond Productions LLC, which now produces House of Deréon apparel. Walker alleged in the lawsuit that he is owed additional financial compensation for introducing the two parties. The lawsuit asks for $500,000 in damages against Knowles and $1 million against Wear Me Apparel.

Walker’s lawyer declined to comment on the lawsuit. A spokesman for the Knowles’ had no comment, and Corey Silverstein, Wear Me Apparel’s executive vice president, also declined comment.

Knowles isn’t the only music star to land in court over a licensed apparel brand this year. Jessica Simpson faced allegations that she failed to promote her Princy and JS by Jessica Simpson lines. Tarrant Apparel Group sued Simpson and master license holder Vincent Camuto for $100 million in April. Camuto later filed a countersuit against Tarrant for $100 million. Both suits are still pending.

This story first appeared in the July 25, 2006 issue of WWD. Subscribe Today.

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