Pamela Love, a renowned Los Angeles-based jewelry designer, has taken legal action against the jewelry company Alex and Ani. The lawsuit, filed in New York, alleges that despite her contributions as creative director, Love has not been compensated for her work over the past ten months. According to the suit, Alex and Ani owes her up to $6 million in royalties and consulting fees. The case also highlights an alleged conspiracy by the company's owners to evade payments through asset transfers and a collusive foreclosure. This legal battle comes at a time when Alex and Ani is struggling financially, having previously filed for bankruptcy in 2021. The lawsuit names two key entities: Bathing Club LLC, controlled by celebrity attorney Mark Geragos, and LC A&A Holdings, managed by financier Lyndon Lea.

In early 2023, Love joined Alex and Ani as their creative director, tasked with revamping the brand’s product line. Her contract promised her a monthly fee of approximately $21,000 along with royalties on sales of the designs she contributed. Initially, payments were made, but soon they ceased. Despite her creations being sold since last summer, Love never received any royalty payments or sales reports that would allow her to verify these earnings. By the spring of 2024, she initiated arbitration to recover the unpaid funds. During this process, it was admitted by a former company lawyer that efforts were underway to find a way to pay Love.

The arbitrator, Katherine Chilton, ruled in favor of Love, acknowledging that the company had not paid her for nearly a year. Chilton ordered Alex and Ani to post a security deposit of $208,333.40 for consulting work plus additional costs. However, the company justified its non-payment citing poor financial health and asset transfers to third parties. Love’s lawsuit further alleges that there was a deliberate attempt over several years to move assets out of reach of creditors like herself. In February 2023, Bathing Club LLC secured an interest in all of Alex and Ani’s assets. Later, in 2024, shortly after Love started arbitration, Lea assigned a lien on all company assets to Bathing Club. This transfer, described as "insider to insider," led to a strict foreclosure on Alex and Ani’s assets around July 24, 2024, which Love claims was a sham to defraud creditors without disrupting business operations.

Despite claims of winding down the company, evidence suggests that Alex and Ani’s online operations have continued. In the fall, one of Love’s managers was able to purchase a ring designed by Love from the company’s website, yet no royalty payment was made for this sale. Additionally, CEO Prita Kumar, who was reportedly laid off in July, posted on LinkedIn about the company’s hiring plans, indicating ongoing business activities. The lawsuit also mentions a conversation between Love and Alex and Ani’s chief creative officer, where it was suggested that Love would be transferred to a different company under Geragos’ control, part of a premeditated plan to manage payments differently.

The allegations against Alex and Ani highlight a complex web of financial maneuvers that allegedly aimed to shield assets from creditors. As the legal proceedings unfold, the case underscores the challenges faced by designers and consultants when dealing with financially troubled companies. The outcome of this lawsuit could set a precedent for how such disputes are handled in the future, particularly in industries where intellectual property and creative contributions play a crucial role.