Thirteen Lune and its co-founder, Nyakio Grieco, are being sued by investors over allegations of misappropriating company funds and fraud.
The suit was filed against the BIPOC-focused beauty retailer on 4 March in Los Angeles County Superior Courts by Beauty Generations Fund and Relevance Capital.
Some 17 complaints have been made by the plaintiffs, including allegedly aiding and abetting securities fraud, fraudulent concealment and breach of fiduciary duty.
This includes allegations that Grieco had used funds for personal purchases, according to a report by Kirb.
Other defendants named in the case include the retailer’s owner SNR Capital.
“Ms Grieco did not embezzle funds or commit financial fraud at Thirteen Lune,” read a statement from Grieco’s attorney seen and reported by The Business of Fashion.
“She strongly denies these allegations.
“We look forward to defeating plaintiffs’ defective claims at the earliest possible opportunity.”
Thirteen Lune was co-founded by Grieco and Patrick Herning in 2020.
It launched with initial funding from investors Fearless Fund and Capstar Ventures.
Actress Gwyneth Paltrow, DJ Hannah Bronfman and supermodel Naomi Watts have also invested in the business.
Cosmetics Business has contacted Thirteen Lune for comment.