Rhuigi Villaseñor Stole Rhude Company Funds to Support His "Lavish Lifestyle," According to New Federal Lawsuit
The suit alleges that the designer would routinely sell Rhude’s goods to VIP clients in private sales to keep profits for himself.
Rhuigi Villaseñor, the designer behind the luxury Los Angeles-based streetwear label Rhude, is facing accusations of stealing company funds to support his own “lavish lifestyle” in a federal lawsuit, according to the Los Angeles Times.
Filed by George Robertson, an owner of a 20% stake in the Rhude brand, the lawsuit alleges that Villaseñor “has been pilfering the Rhude Companies’ coffers” to front his expensive bills, including those for “private jet travel, Italian vacations, Ferraris, Lamborghinis and a collection of $100,000 watches,” per the outlet.
Robertson, who is looking for compensation and the removal of Villaseñor’s executive power at Rhude Companies, also alleges in the suit that the designer raked in yearly revenues of more than $30 million USD. But while the brand’s sales tallied eight figures, Robertson, as a co-owner, claims he has received annual distributions as low as $41,000 USD from Villaseñor. Further, Robertson alleges that Villaseñor would conceal sales by routinely selling Rhude’s goods to VIP clients in private sales and keeping the profits for himself. “He has taken advantage of his power and control over the Rhude Companies’ products, designs, bank accounts and financial records to enrich himself to Robertson’s detriment,” the lawsuit states.
Robertson claimed his stake in the company with a $50,000 USD investment in 2016, but he reportedly fell out with the designer just three years later. In the suit, he alleges that the designer “grew jealous” after he came up with several top-selling product ideas. Villaseñor offered to pay his co-owner $5 million USD for his stake in the company in 2021. The full parameters of the suit can be seen in an Instagram post from Sneaker Legal, a law firm specializing in sneakers and streetwear, below.
Villaseñor did not respond to Hypebeast’s requests for comment.
Elsewhere, Louis Vuitton partnered with Sotheby’s to host an auction for exclusive Artycapucines bags.
