Fashion Nova — the popular clothing company worn by the likes of Cardi B, Kylie Jenner, and Blac Chyna — is being sued by a fraud prevention company for up to a million dollars for allegedly breaking their contract and not paying their bill.
According to court documents obtained by The Blast, Riskified, Inc. claims they entered into a deal with Fashion Nova in May of 2017 to provide card screening services.
Riskified describes their work by saying they “provide fraud screening services to assist e-commerce merchants in managing the risk of fraud in on-line ‘card-not-present’ transactions, where purchasers cannot physically present their credit cards for the merchants’ inspection at the time of order and payment.”
The original deal called for Fashion Nova to only send a limited amount of transactions but according to Riskified, it was amended in November 2017 for Fashion Nova to send all transactions through them.
As part of the amended deal, Riskified says, “The Amendment further provided that Defendant would pay Plaintiffs a fee of 0.575% of the total order amount of all sales transactions which Defendant submitted to Plaintiffs and Plaintiffs recommended to accept.”
After just a few weeks, Riskified claims Fashion Nova stopped sending all transactions and went back to doing just select transactions. A month later, Riskified says Fashion Nova stopped sending transactions altogether.
Riskified claims they charged Fashion Nova on a monthly basis, as per the deal, but Fashion Nova never paid.
According to Riskified, they are owed $930,000 for breach of contract and $431,955.66 in past bills.
We reached out to a rep for Fashion Nova — so far, no word back.