Rhude Shareholder Files Lawsuit Against Founder Rhuigi Villaseñor

George Robertson, a partner in Rhuigi Villaseñor’s hit LA-based luxury streetwear brand Rhude, is accusing the designer of using company finances to fund his lifestyle.

Robertson, a music agent who owns a 20 percent stake in the business, filed a lawsuit this week with the US District Court in LA, alleging Villaseñor “has been pilfering the Rhude Companies’ coffers to support that lavish lifestyle” and “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 that Villaseñor used company money to fund “private jets, Ferraris and Lamborghinis, a home in the Hollywood Hills, extended stays in Italian villas, and a watch collection that includes several pieces worth more than $100,000.”

A spokesperson for Villaseñor declined to comment on the suit.

The news was first reported by the Los Angeles Times.

Villaseñor founded Rhude in 2015. The following year, Robertson invested $50,000 in the business and was brought on as a partner to help the brand grow, the lawsuit says.

Over the next few years, Robertson leveraged his personal connections to help propel the brand and contributed to its creative output, according to the suit. However, the suit alleges that “Robertson’s influence over the brand began to bother Villaseñor” and that Villaseñor “grew jealous of the credit Robertson was receiving internally.”

Villaseñor allegedly “sought to eliminate Robertson’s creative contributions to the brand, assert his own vision, and keep all profits for himself,” according to the suit.

Robertson is seeking damages and the removal of Villaseñor from his managerial position at the fashion label.

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