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June 13, 2011

  • News:  Kardashians Win 

    The Kardashian family, of reality TV fame, has won a momentous legal victory by successfully fending off a $75 million lawsuit from a credit card company claiming the sisters, Kim, Khloe and Kourtney, were responsible for the collapse of that credit card company that had hired them as spokespersons. The girls, along with their mom Kris Jenner, were sued in January by Revenue Resource Group, which owns the Mobile Resource Card. The suit alleges they walked away from an agreement to endorse a branded card, known as the Kardashian Kard. The reality TV stars were being paid to promote the prepaid debit card in the press and on social networking websites. The deal would pay them a flat fee as well as a percentage of the revenue from customers who signed up. The girls changed their mind about the card when it came out that it had very high fees. They terminated their deal with the credit card company and started slamming the debit card.

    In the wake of their departure, the credit card company's business collapsed and they, in turn, sued in the California Superior Court in Fresno, claiming $75 million in damages from the breach of contract. They argued the Kardashian's not only violated a simple sponsorship deal but also a joint business venture, putting them on the hook for the certain collapse of the company. The Kardashian's countered with an anti-SLAPP motion, a strategy used in California to get out of lawsuits that come about due to people voicing their opinion on public issues. Basically, the credit card company accuses the girls of failing to say positive things about a prepaid debit card.

    The judge ruled that the credit card company couldn't prove the Kardashians termination single handedly ruined its business but rather it was also the "onslaught of negative coverage before and after their statement about the fees and charges" connected with the debit card. Basically he said the card was its own worst enemy.

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