A new lawsuit filed in a California federal court could be the last straw for Abh Cosmetics Inc., which said Tuesday it was suing President Donald Trump’s former fashion house for $25 million over allegations it misappropriated company funds.
The suit, filed in the U.S. District Court for the Northern District of California, seeks to force Trump to pay damages for alleged “incompetence, deceit and fraudulent conduct.”
Trump’s longtime fashion house, which had an agreement to donate money to a charity of the same name, has been under fire for years over allegations of mistreating employees and falsifying financial reports.
Trump and his son Donald Jr. are also named as defendants.
Trump has denied any wrongdoing.
A statement from Abh said Trump “has not been a part of our company and we do not wish to further speculate on the facts or motives behind his departure.”
The lawsuit also alleged that Trump did not “knowingly fail to inform Abh about the breach of contract, or for any reason otherwise” and that Abh has been “inundated with threats, intimidation and false claims.”
Abh’s lawyer, Andrew Krosner, said Tuesday in a statement that “we have been preparing for this day for months and we have no doubt that the Trump administration will be vindicated in this matter.”
The company’s chief executive, Mark Lutz, said Abh had been trying to resolve the lawsuit with Trump since last year, but that the president had not been responsive.
He said he was not aware of any further actions on the matter.
The Associated Press reported that the lawsuit was filed in California Superior Court.
Abh, founded by the late founder of the New York fashion house Stella McCartney, had been run by Lutz since 2016.
It was owned by the Trump Organization.
Trump’s attorney, Marc Kasowitz, declined to comment.