WACO, Texas – HGTV star Chip Gaines is speaking out on Twitter about a lawsuit filed against him by his former business partners.
Gaines is being sued in state court in Texas for $1 million by his former partners in a real estate company. They say he bought them out before telling them that HGTV had decided to broadcast his “Fixer Upper” show nationally and that the show would feature the ‘Magnolia’ brand name.
In 2007, John L. Lewis and Richard L. Clark were equal partners with Gaines in founding the Magnolia Real Estate Company.
The suit alleges that for the first six years, the company largely operated with a single real estate agent before Gaines worked out a deal with HGTV without telling his partners.
“With this insider information in hand, Chip Gaines convinced plaintiffs to sell their membership interests in Magnolia Realty quickly to him before a public announcement that ‘Fixer Upper’ was picked up by HGTV,” the suit claims.
Instead, they claim he bought their shares of the company for $2,500 each.
Gaines spoke out on Twitter Saturday, writing that no one called or emailed him about the issue, adding “’friends’ reach out via lawsuit.. humm.”
He also added a Bible quote, “The light shines in the darkness, and the darkness has not overcome it.”
Gaines’ attorney tells KWTX-TV that he’s “confident that these claims will be found to be meritless.”