John Lewis and Richard Clark say Chip Gaines convinced them to sell their pieces of Magnolia Realty for just about 25-hundred dollars each in May of 2013. They say Gaines told them, “There are no assets” and the company is “less than worthless.” Days later, Gaines announced HGTV and Scripps Networks planned to produce the television show.
The lawsuit filed Wednesday in Texas also says Gaines concealed that information, which directly affected the value of Magnolia Realty. Allegations of threats are also included in the documents.
The plaintiffs also claim in the lawsuit that Chip Gaines sent the following text message when Clark became upset that Gaines was trying to lower the buyout: “You better tell Rick to be careful. I don’t come from the nerdy prep school he’s from. And when people talk to me that way they get their asses kicked.”
A lawyer for the “Fixer Upper” star responded to questions by saying “We are confident that these claims will be found to be meritless, and it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines.”