Lindsay Lohan, who recently checked into the Betty Ford Rehab Center, is now facing more legal trouble.
DNAM, the clothing manufacturer that partnered with the actress for her clothing line 6126, is firing back and counter-suing Lohan over a licensing dispute. The manufacturer claims Lohan's tarnished reputation is keeping them from adequately doing their job.
According to E! News, in a $5 million breach-of-contract counter claim filed against Lohan in a California U.S. District Court, DNAM alleges that while the actress' leggings line initially was successful at department stores in 2010, buyers eventually began to back out "because they did not want to be associated with Lohan's drug idled image."
DNAM claims "no one would touch the line" and in the spring of 2011 things got worse for 6126. Buyers not only backed out, but began to cancel appointments and customers began to cancel orders. Lohan, who was in rehab at the time, could not endorse the brand or provide any feedback.
DNAM claims that because of Lohan's troubled past and her drug and alcohol problems, it has reflected negatively on the brand and has devalued the brand. The company is seeking $5 million in damages.
Kristy Kaylor, Lohan's business partner, told E! News that DNAM is only counter-suing to get out of their financial obligations and 6126 has not suffered damages totaling more than a million dollars.
"DNAM countersuit against 6126 is frivolous and misrepresents the facts," Kaylor said. "DNAM knows that it is in breach of the 6126 license agreement, and this suit is clearly nothing more than a transparent defense maneuver. Lindsay and I worked over three years to build 6126 brand and ensure its success; DNAM is merely trying to get out of honoring its financial obligations."
In January, Lohan filed a lawsuit against the clothing manufacturer for continuing to sell the brand even though the license had been revoked due to several breaches of contract.
