Corporate Law News

Hamptons Lifestyle of Lip Balm Executive Draws Suit By Co-CEO

Oct. 10, 2019, 8:54 PM

The co-CEO of lip balm maker EOS Products LLC filed suit Oct. 10 in Delaware, claiming he’s being squeezed out for trying to rein in his counterpart’s “lavish” Hamptons lifestyle, allegedly funded with $100 million of company money.

Jonathan Teller controls 85% of EOS’s ultimate parent, while co-founder Sanjiv Mehra owns the other 15%, according to Mehra’s Chancery Court complaint. The holding company’s operating agreement also gives Mehra the right to 50% of its distributions once they reach a certain level, even if it’s dissolved, he claims.

The suit accuses Teller of taking cash advances out of EOS to pay...

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