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Reality star Taylor Armstrong and her almost-ex-husband have been hit with a $1.5 million breach of contract lawsuit.
"Real Housewives of Beverly Hills" star Taylor Armstrong and her not-quite-ex-husband have been hit with a lawsuit accusing the pair of misleading a company's investors in order to fund their opulent lifestyles.
According to the complaint, filed Friday in Los Angeles, the divorcing couple misled their own company's investors into believing they were really investing in MyMedicalRecords.com—which they weren't, the suit said.
MyMedicalRecords.com's suit charged that in soliciting investments with misleading information, Armstrong and her husband Russell wound up pocketing for themselves money that should have gone to it.
That money wound up lining the pockets of their mansion's decorators and financing a high-end restaurant in partnership with Eva Longoria, it claimed.
The celebrity couple was helped by the fact that Russell Armstrong owned another company that held a controlling share in the medical document management Web site, the suit claimed. It said he wound up diverting over $1 million that should have gone to MyMedicalRecords.com to himself and his wife.
According to the company, it has already inked a settlement deal with the Armstrongs, but they haven't fully abided by it. The company said several people had contacted it, complaining that the Armstrongs had misled them into thinking they were buying stock in it.
The Armstrongs' transactions with those people should have been reported and addressed with the earlier settlement but weren't, said MyMedicalRecords.com.
The company demanded at least $1.5 million from the Armstrongs—damages it said would settle their breach of the terms of their previous deal, depending upon whether other claims came to light later.
The litigation against them is just the latest in a string of personal troubles for the Armstrongs, who are already undergoing a very public divorce.
Taylor Armstrong told People Magazine on Thursday that the divorce, for which she filed July 15, was prompted in part by physical and verbal abuse by her co-defendant and husband. Her husband for his part acknowledged having pushed his wife during fights but denied some of her other claims.