TEEN Mom 2’s Chelsea Houska and her husband Cole DeBoer have been sued for $ 3 million after allegedly “withholding” money from social media campaigns.
In court files from The Sun, Chelsea, 29, Cole, 32, their company C & A Enterprises and The William Gerard Group were sued by the consulting firm Envy for breach of contract in April 2020.
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Teenage mother Chelsea Houska and her husband Cole DeBoer were sued for $ 3 millionPhoto credit: MTV
Envy alleged in the lawsuit, which first broke YouTube channel Without a Crystal Ball, that the company entered into a 2015 contract with The William Gerard Group to sell Chelsea and Cole, who signed a contract in 2016, in exchange for a Part of the income from shops.
Chelsea’s children Aubree, 11, Watson, three, Layne, two, and their father Randy were enrolled in the contract.
Envy worked from 2015 to 2019 as a “consultant for the negotiation of performance, advertising, license, licensing and television contracts and related contracts”.
The court records allege that Chelsea and Cole “did not pay any of the contractual fees”.
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The couple allegedly “failed to pay contractually stipulated fees” to a company that helped set up advertising contracts, including for Diff EyewearPhoto credit: Instagram
Chelsea and Cole had to pay Envy 35 percent of all fees or royalties for domestic business and 40 percent for international business.
The court records alleged that Chelsea and Cole “were in breach of their contracts by instructing certain brands to pay Houska, DeBoer, one of the other joint customers, and / or other individuals or organizations directly in order to avoid paying envy license fees.” . “
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Another included Fab Fit Fun BoxPhoto credit: Instagram
The MTV stars “both failed to perform many of their duties to the brands for no reason or reason.
“This included, but is not limited to, Bombay Hair Stick, Carseat Canopy, Daniel Wellington, Diff, Fab Fit Fun, Highway3, Kitsch, Kitsch Hats, Loving Tan, One Memory Lane, Perfect Beauty, Profil Sanford, Sintillia, Sparkling Organics Sipp , Sugar Bear Hair, Teami Blends and Timeless Organics. “
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The parties allegedly made “millions of dollars” out of advertising dealsPhoto credit: Instagram
The alleged failure to meet contractual obligations resulted in “certain fees that Envy was entitled to forfeit”.
Court records continued to claim that Chelsea and Cole made “millions of dollars” as a result of Envy’s efforts.
The company is suing the defendants on $ 3 million.
Chelsea, Cole, and the other defendants hit back against the lawsuit by counterclaiming in May 2020 alleging that Envy had in fact withheld $ 150,000 from them.
Chelsea and Cole denied the allegations, claiming they owe no payments to Envy.
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Chelsea and Cole counterclaimed alleging the company owed them moneyPhoto credit: Instagram
The court records state: “Envy wrongly withheld payments because of Chelsea.”
Regarding Envy’s alleged deal with her children, Chelsea claimed, “There is no agreement on Chelsea’s children.”
The reality stars claimed Envy “actually harmed the professional careers of Defendants Chelsea and Cole by withholding substantial payments and acting unprofessionally, including, but not limited to, with and without respect to Chelsea and Cole, Potential and then.” – Existing license contacts and other professional contacts of Chelsea and Cole. “
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Chelsea and Cole denied their children were part of the contracts, despite Envy’s claimsPhoto credit: Instagram
Defendants also alleged that Envy “purposely omitted numerous business and / or income from bank statements in order to prevent Chelsea, Cole and TWGG from lawfully and owed them”.
Chelsea claimed she owed her $ 154,074.62 from stores in Loving Tan, Profile, Diff Eyewear, and more.
They demand the dismissal of the lawsuit and the receipt of “monetary damages for their counterclaims”.
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Chelsea’s filing has been postponed due to her pregnancyPhoto credit: @ chelseahouska / Instagram
Envy denied the claims against her in her response.
In the last January filing, Chelsea claimed she couldn’t be deposed until March because of her fourth pregnancy, which means she could give her testimony.
The lawsuit came months before Chelsea left Teen Mom 2 to “focus on the next chapter in life and focus on building our brand and taking things to the next level with new aspirations and family business expansion. ”
She promoted the South Dakota clothing boutique Laurie Belles to sell her own line of clothing with them.
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Chelsea advertises numerous brands on their social mediaPhoto credit: Instagram
Chelsea and Cole also have a collection of diaper bags and shoulder bags, as well as blankets with the Itzy Ritzy company.
Chelsea also has a sunglasses collection with DIFF Eyewear.
All brands were included in the lawsuit.
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The couple also own a massive South Dakota mansionPhoto credit: Instagram
However, Chelsea and Cole have also poured money into purchases, including a huge South Dakota mansion for which they paid $ 418,000.
Built in 2008, the 1,966-square-foot ranch home has five bedrooms, two bathrooms, and a three-car garage.
The kitchen features stainless steel appliances, granite countertops, white wood cabinets, and hardwood floors.
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They have also taken numerous vacations, including one to Puerto Rico and a ski vacation to ColoradoPhoto credit: Instagram
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Chelsea and Cole smile on the way to Puerto RicoPhoto credit: Instagram
The couple have also not been to South Dakota in all those years as they also went on various trips, including a 2015 short break in Puerto Rico.
In 2018, they also traveled to Colorado on a family ski vacation – during which their home was broken into while they were away at the time.
Chelsea has also owned a variety of cars over the years, including a Land Rover, Jeep, and SUV.
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The family left Teen Mom 2 in 2020Photo credit: Instagram
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Chelsea launched the Aubree Says home decor linePhoto credit: Instagram
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The ninth season of Teen Mom OG aired on MTV on January 26, 2021.
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The company has been targeted by fans for its “overpriced” items.
Chelsea welcomed their fourth child with Cole, daughter Walker, in late January.
Teen mom Chelsea Houska jokes that she “survives, not thrives” a week after giving birth
