A Canadian judge ruled Friday morning to oust Deciem founder Brandon Truaxe.
The judge granted an injunction from the Estée Lauder Cos. Inc., searching for to have Truaxe removed and co-ceo Nicola Kilner appointed the only, interim ceo. The injunction followed Truaxe’s Monday Instagram post where he unilaterally shut down the business.
Tuesday, stores began closing, and Wednesday afternoon, Lauder — which owns a 28 percent stake within the business — filed for an injunction in Canada, searching for to oust Truaxe from the corporate’s board and his ceo position (he referred to himself as “employee,” not ceo). Andrew Ross, executive vice chairman of strategy and latest business development at Lauder, and Pasquale Cusano, are actually the corporate’s only board members.
Deciem is anticipated to be up and running as soon as possible — that features reopening the stores.
The judge’s decision Friday removes Truaxe from his role after months of publicly erratic behavior – much of it, posted on Instagram from his own and Deciem’s branded accounts.
Within the suit, Lauder claimed that Truaxe’s decisions — which included sending an e-mail blast Monday firing Kilner and chief financial officer Anand Khanzode — was “causing irreparable harm to Deciem’s business, and chaos and confusion for Deciem’s employees, customers, consumers, suppliers, landlords and other stakeholders.
“This isn’t only causing irreparable harm to the Estée Lauder Cosmetics’ investment in Deciem, but it surely is harming Estée Lauder’s fame because Estée Lauder has an equity ownership in, and due to this fact an association with, Deciem,” Lauder added.
On Instagram Monday, Truaxe said, “That is the ultimate post of Deciem, which is able to shut down all operations until further notice, which is about two months.…Please take me seriously.…Almost everyone at Deciem has been involved in a significant criminal activity, which incorporates financial crimes.” The granting of Lauder’s injunction also implies that Pricewaterhouse Coopers LLP has been appointed to research the alleged financial crimes.
A spokeswoman for Lauder said, “We’re pleased with the court’s decision today, and can be working closely with Deciem’s leadership team to support and guide them as they resume operations and proceed to supply consumers with the products that they know and love.”
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