CHIP GAINES SUED FOR FRAUD BY FORMER REAL ESTATE PARTNERS

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Chip Gaines, of Fixer Upper (HGTV) fame was sued this past week for fraud by two former partners in his Magnolia Real Estate business.

Gaines fired off these tweets on Friday:

WFAA reports this about the lawsuit:

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A previous statement from Gaines’ attorney Jordan Mayfield claimed the lawsuit was without merit.

“We are confident that these claims will be found to be meritless, and it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines,” Mayfield wrote in an email.

But, Lewis and Clark disagree. The former real estate partners sold their 1/3 ownership stakes in Magnolia Realty for $2,500 apiece two days before Gaines publicly announced the reality show, the lawsuit alleges. But, the decision to broadcast ‘Fixer Upper’ nationally was made three weeks before Gaines asked them to sell, the lawsuit claims. Lewis and Clark claim they would not have sold their stakes so inexpensively had they known the show was picked up by HGTV.

“Chip Gaines conspired to eliminate his business partners — notwithstanding their longstanding friendship– in order to ensure that he alone would profit from Magnolia Realty’s association with ‘Fixer Upper,'” says the lawsuit.

No matter your thoughts on the lawsuit, it’s clear that when people are suddenly successful, “friends” and lawsuits are certain to follow.

We will continue updating our followers on this story as it develops.

Featured photo courtesy of Magnolia Market, Waco, Texas

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