"Real Housewives of Beverly Hills" couple Lisa Vanderpump and Ken Todd have been named in a fraud lawsuit over a business deal gone wrong.
Entrepreneurs Ryan Allen Carrillo and Andrew Gruver filed a lawsuit in Los Angeles Superior Court this week, naming Vanderpump and her husband as defendants and alleging breach of fiduciary duty, constructive fraud, breach of contract, and misrepresentation and deceit, according to court documents obtained by RadarOnline.com.
Carrillo and Gruver claim the couple "unfairly snatched the West Hollywood venue" where they intended to open a gay sports bar called Bar Varsity.
The plaintiffs say they developed plans and entered into a deal with Elie Samaha, who owned the property at 8948 Santa Monica Blvd. Samaha allegedly agreed to put down a $500,000 investment but never followed through. Because of this, other investors backed out, the document states. They supposedly tried to contact Samaha to no avail.
Then, in February, the two noticed a sign at the West Hollywood locale for P.U.M.P. Lounge, according to the filing. They came to find out the Vanderpumps had leased the venue to open another California hotspot.
Carrillo and Gruver allege the Vanderpumps interfered with contractual and prospective economic relations because they knew there was already deal in place but "intended to disrupt the performance of the Agreement" anyway. The plaintiffs are suing for damages in excess of $4 million and seeking a temporary restraining order and preliminary injunction to stop the development of P.U.M.P. Lounge.
The 52-year-old former "Dancing With the Stars" contestant and her husband are outraged by the claims.
"We had no prior knowledge of Ryan Carrillo and Andrew Gruver or their claim," Vanderpump and her husband said in a statement to the Daily Mail. "We took the lease in good faith seven months ago and all of our applications and notices have been posted publicly. Any issue will be between them and the property owner."
Lisa Vanderpump is not the only "Housewives" star to be embroiled in fraud issues recently. "Real Housewives of New Jersey" alum Teresa Giudice and her husband, Joe, were indicted on 39 counts of bank and bankruptcy fraud last month. They have both pleaded not guilty and are expected to go to trial Oct. 8.