Table of Contents
Rhuigi Villaseñor under legal pressure
Accusations against Rhude designer Rhugi Villaseñor
Rhuigi Villaseñor, the renowned fashion designer responsible for the esteemed streetwear brand Rhude, is currently facing serious allegations of misappropriating company funds to finance his extravagant lifestyle. The claims have been brought forward in a federal lawsuit, as reported by the reputable Los Angeles Times.
The lawsuit, filed by George Robertson, an individual who holds a 20% ownership stake in the Rhude brand, accuses Villaseñor of engaging in embezzlement activities by depleting the financial resources of Rhude Companies for his personal benefit. The alleged expenses include exorbitant bills for private jet travel, luxurious Italian vacations, indulgence in luxury cars such as Ferraris and Lamborghinis, as well as a vast collection of watches valued at $100,000 each, according to sources cited by the Los Angeles Times.
Legal demands against Rhuigi
Robertson's legal action seeks both compensation for the damages suffered and the removal of Villaseñor from his executive position at Rhude Companies. The lawsuit also claims that Villaseñor amassed annual revenues exceeding $30 million USD, while Robertson, as a co-owner, purportedly received meager annual distributions as low as $41,000 USD from Villaseñor. Additionally, Robertson alleges that Villaseñor would intentionally conceal sales by discreetly offering Rhude's products to VIP clients through private sales, consequently diverting the profits for his personal gain. The lawsuit asserts that Villaseñor abused his authority and control over the company's products, designs, bank accounts, and financial records, all to the detriment of Robertson.
The legal dispute stems from Robertson's initial investment of $50,000 USD in 2016, through which he acquired his ownership stake in the company. However, tensions between Robertson and Villaseñor reportedly escalated, leading to a falling out between the two parties just three years later. In the lawsuit, Robertson alleges that Villaseñor's behavior became increasingly envious after Robertson contributed several highly successful product ideas. In 2021, Villaseñor allegedly offered to purchase Robertson's stake in the company for $5 million USD. Sneaker Legal, a law firm specializing in sneaker and streetwear matters, has shared the complete details of the lawsuit in an Instagram post, providing comprehensive insight into the case.
