Lohan’s New Biz Faces Restraining Order

MANHATTAN (CN) - A day after a competing business sued her in New York County Supreme Court, Lindsay Lohan got slapped with a restraining order interrupting the launch of Vigme, an online marketplace that lets users browse the "virtual closets" of their fashion icons.

Spotted Friend CEO Spotted Friend claims that Lohan used to be his company's spokeswoman before she jumped ship, poached his advisers and started her "clone" company with her brother Michael and a mutual associate named Christopher Roth.

Neither of the competing apps have yet launched.

Judge Saliann Scarpulla forbid Lohan from publicizing, developing or soliciting investments for Vigme in a four-page order on Friday.

She ordered the parties to appear in court for oral argument on the morning of Nov. 20.

Potik's lawyer Kenneth David, from the firm Kasowitz, Benson, Torres & Friedman, applauded the decision.

"The court's order was based on our submissions to the court setting forth that the Lohans' egregious theft of the design, layout, and functionality of Spotted Friend's app in blatant violation of their contractual and fiduciary duties," David said in a statement. "This significant victory helps ensure that the Lohans will not profit from their illegal conduct at Spotted Friend's expense. We look forward to demonstrating at the preliminary injunction stage that Spotted Friend will ultimately succeed on the merits of its contractual and common law claims."

The Huffington Post's editor-in-chief Arianna Huffington and ad mogul Donny Deutsch used to be affiliated with Spotted Friend before throwing their clout behind Vigme, Potik says.

Huffington and Deutsch are not named as defendants in the complaint.

Lohan's lawyer Ravri Batra downplayed the significance of the order, which he said contains "no finding of fault, but preserves the status quo."

Batra's statement also hits back at Potik with some pointed allegations of his own.

"Fima is an inept plagiarizer who fraudulently induced Lindsay, Mike and Chris to join him with representations, false when made, that he would have a product-recognizing App by June 2013 - an app he still hasn't created," Batra said. "Fima's days of being a celebrity-leach are over as this case moves forward."

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