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Eva Longoria Sued By Former Vegas Nightclub Partner

By Minara El-Rahman on January 14, 2011 | Last updated on March 21, 2019

While Gabrielle Solis may never have had money troubles, Eva Longoria, star of the ABC hit show Desperate Housewives, certainly does.

Eva Longoria is being sued by an investor in her nightclub Beso for violating California usury law, according to ABC News. Mali Nachum, a former partner of Beso, claims that the terms of Eva Longoria's repayment for her $1 million investment violate California usury law. 

Eva Longoria invested the money with terms of yearly repayment of 8%. In addition, Eva Longoria was given a 23.3 percent stake in the company, MSNBC.com reports. Mali Nachum and investor Jonas Lawrence both reduced their share in the company in order to accommodate Eva Longoria's share.

Any interest rate greater than 12% is considered an unlawful interest rate, according to FindLaw. An unlawful interest rate is known by the term usury. Usury is an unconscionable and exorbitant rate or amount of interest which exceeds those permitted by state law. Nachum claims that the Desperate Housewives star is not legally entitled to 8% plus the 23.33% in the company. Mali Nachum is suing for at least $4 million in damages. The lawsuit was filed in Los Angeles County Superior Court this past Monday.

While the business venture took place in Las Vegas, Nachum (who is a California resident) claims that his loan agreement with Longoria (also a California resident) was written to be in accordance with California law.  

Eva Longoria's camp responded by saying that the lawsuit has no merit: "This is a desperate reaction in a lawsuit without merit by prior partners who, through their unauthorized and fraudulent actions, required Eva Longoria to seek reorganization protection through bankruptcy court in Nevada," said a representative for the star.

Beso LLC, which operates Beso restaurant and Eve Nightclub in the CityCenter development, filed for Chapter 11 bankruptcy, the Wall Street Journal reports. Eva Longoria tried to take all of her legal troubles with her venture in stride by saying, "It's a New Year and we're making a new start. This is a great opportunity to begin anew, and I look forward to an exciting and enterprising 2011. I look forward to a more proactive, hands-on approach in the coming year with my Las Vegas business."

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