, a favorite brand of Jay-Z, Justin Bieber, LeBron James, Saweetie and many other celebrities, was accused in a federal lawsuit this week of raiding company funds to live like one of his rich and famous clients.
George Robertson, who owns 20% of Rhude, alleged in the suit that Villaseñor boasted of annual revenues in excess of $30 million but made distributions of as little as $41,000 a year to his co-owner.“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 suit alleges.
The mix of luxury and street style attracted hip-hop artists and NBA stars. Among its best-known products are “traxedo” pants, track pants with high-end finishes that sell for $800 and have been worn on stage by Ellen DeGeneres and A$AP Rocky. The pair fell out in 2019. Robertson contends that Villaseñor “grew jealous” that he had come up with the idea for the “traxedo” pants and other bestsellers and banished him from the office.