Remember we told you about Lindsay Lohan’s legal battle with D.N.A.M Apparel Industries? Well, the former child star has now settled with the clothing company for a meagre $150,000!
In 2012, Lohan and her business partner, Kristi Kaylor, filed a $1.1 million lawsuit against D.N.A.M for trademark infringement. Lohan claimed that D.N.A.M owed her $500k in royalties and claimed that the company had made false representations to induce Lohan into entering into the agreement.
In response to this, D.N.A.M filed a $5 million breach of contract counterclaim against Lindsay in May of last year, claiming that, even though their first collection with Lohan was very well received in 2010, after jail time and a rehab stay later that year, her hard-partying image devalued the brand.
Lohan’s lawyer refuted the contention, stating, ”The license agreement does not have a morals clause that allows the company to suspend payment for any behaviour. The contract is not in Lohan’s name thus she cannot be held personally liable. The cross claim is therefore frivolous and will be defended vigorously”.
Kristi Kaylor also insisted that Lohan’s issues “had nothing to do with the loss of business,” and prior to their agreement, “Lindsay had two well-documented arrests and stays in rehab and the 6126 line still flourished. During the first year of the license agreement with DNAM, the line did 2.3 million sales. It was [DNAM’s] production problems and accepting bank wires for international orders and never shipping the goods nor returning the money that plagued the line.” She also stated that Lohan “promoted the line and performed all her obligations under the license agreement” but retailers such as Neiman Marcus and Federated “cancelled the line due to problems with DNAM’s short shipping orders and not honouring margin terms previously negotiated with 6126.”
The settlement brings an end to the latest of many legal sagas for La Lohan. Until next time, Lindsay!
Sheila Nsue Nfono is a graduate of University of Navarra in Spain and a holds a postgraduate degree in Law from London Metropolitan University