Chip Gaines can’t be happy about this!
On Wednesday, a $1 million lawsuit was filed against the Fixer Upper star and others over the fact Gaines allegedly bought them out of Magnolia Real Estate Company without telling them that he had made a deal with HGTV. Oof.
According to Chip’s former partners, John L. Lewis and Richard L. Clark, the TV personality urged them to sell their equal shares while keeping to himself that the home improvement channel was planning to feature their business on Fixer Upper.
Regardless, Chip is already fighting back against these claims as his lawyer, Jordan Mayfield, told People:
“We are confident that these claims will be found to be meritless, and it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines.”
Still, Lewis and Clark are confident they have a case as they
explored the Americas founded the company with Gaines back in 2007 when it was just being operated out of Waco, TX with a single real estate agent as an employee. The Magnolia Real Estate Company has grown substantially in recent years as the firm employs “over 93 real estate agents” and is operating all over Texas.
To make matters worse, the 42-year-old paid only $2,500 to each of the gentlemen despite having “insider information in hand.” Supposedly, Chip told the twosome the company was “distressed.”
Lewis and Clark’s lawsuit added:
“Chip Gaines convinced plaintiffs to sell their membership interests in Magnolia Realty quickly to him before a public announcement that Fixer Upper was picked up by HGTV.”
Not to mention, documents show Chip purchased the businessmen’s shares TWO DAYS before he announced that HGTV had picked up Fixer Upper. It’s said, in addition to Chip and and Magnolia being sued, the company which owns HGTV (Scripps Networks) and the production company that handles Fixer Upper (High Noon Productions) are being sued as well.
In regards to the legal matter, HGTV noted:
“We respect the privacy of our show hosts and will not comment on matters related to their personal lives or businesses.”
Isn’t this the same response they gave when Flip Or Flop‘s Tarek and Christina El Moussa split up?? Mix it up with you answers, guys. Anywho, be sure to check back for updates on this lawsuit!
[Image via Instagram.]