The designer behind Rhude, one of today’s most popular streetwear lines, is being accused of misappropriating company funds.
In a new lawsuit filed by co-owner George Robertson, who holds 20% of Rhude, designer Rhuigi Villaseñor is claiming the company brought in up to $30 million annually, the Los Angeles Times reports. Yet, Robertson says he was only paid as little as $41,000 yearly as a minority stake owner. Instead, Robertson believes Villaseñor has spent millions to fund his expensive lifestyle.
Villaseñor’s alleged expenses include lavish vacations, private jets, a massive watch collection, Ferraris, and Lamborghinis. He founded the company in 2015, which combines streetwear with a luxury flair. Several of his pieces sell for hundreds and have been worn by the likes of A$AP Rocky, Jay-Z, LeBron James, Justin Bieber, and countless celebrities.
Robertson invested $50,000 into Rhude in 2016. The music agent co-wrote the 2011 LMFAO hit single “Sexy and I Know It” and used his long list of industry contacts to push the brand into the spotlight. Unfortunately, the pair’s business relationship turned sour in 2019, with Robertson claiming Villaseñor became envious of him after he founded the brand’s famous “traxedo” pants, which sell for around $800. To conceal money made from Rhude, Robertson accuses Villaseñor of selling exclusive merchandise to wealthy VIP clients during private transactions. The investor believes Villaseñor is pocketing all this money.
In addition to proper compensation and a thorough review of the financial records, Robertson is demanding that Villaseñor be removed from having sole control of the company. Villaseñor has not responded to the lawsuit.
