MANHATTAN (CN) - A marketing company sued Elizabeth Arden for $5 million, claiming the cosmetics giant owes it for (nonparty) Justin Bieber-endorsed fragrances.
Total Arts and Entertainment Marketing sued Give Back Brands and Elizabeth Arden, in Federal Court.
Total Arts and Entertainment initiated arbitration against Give Back Brands this month, seeking $3.5 million to $5 million in consulting fees for securing Bieber's endorsement of Give Back Brands' fragrances.
On Tuesday, Total Arts asked the New York County Supreme Court to block Elizabeth Arden from paying the next $5 million due to Give Back Brands, from the sale of its assets, pending resolution of the arbitration.
Total Arts, a Pasadena-based marketer, specializes in connecting celebrities with corporations for sponsorship and endorsements.
In August 2010, Total Arts signed a consulting agreement with Give Back Brands, a California cosmetics company. Total Arts agreed to get Bieber to endorse Give Back Brands' perfumes, in exchange for 6 percent of the compensation Bieber would get from the fragrance endorsement, according to the complaint.
Total Arts claims that it got Bieber and Nicki Minaj to endorse Give Back Brands' fragrances. Neither of them are parties to the complaint.
Total Arts claims that in June 2012, Give Back Brands sold its only assets, the Bieber and Minaj fragrance endorsement agreements, to Elizabeth Arden, without notifying Total Arts.
Give Back Brands claimed it had arranged for Elizabeth Arden to assume its obligations, including the fees due to Total Arts under the consulting agreement.
But Total Arts says Give Back Brands' representations were "false and fraudulent," and that Elizabeth Arden had not agreed to continue making payments to Total Arts.
It claims that Give Back Brands used the $26.5 million it received from Elizabeth Arden to pay other creditors, and refused to pay any other consulting fees to Total Arts.
Total Arts claims Give Back Brands may receive up to $28 million more from Elizabeth Arden if sales of the Bieber and Minaj fragrances meet performance targets.
It wants Elizabeth Arden to hold the next $5 million due to Give Back Brands for a possible arbitral award.
Total Arts is represented by John Rosenberg with Rosenberg & Giger.
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