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Kardashian Kard Lawsuit Tossed by Judge: Sisters Not at Fault

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By Cynthia Hsu, Esq. on June 16, 2011 12:00 PM

The Kardashian sisters now have a reason to celebrate - the Kardashian card lawsuit that was brought against them after the sisters broke off promotional ties and spoke out about the "Kardashian Kard" prepaid debit card has been tossed out by a judge.

Revenue Resource Group LLC had brought the $75 million lawsuit against the sisters when they pulled their support for the Kardashian Kard just three weeks after the product launched, reports CBS News.

The company blamed the sisters' withdrawal as costing them millions of dollars in revenue - and possibly contributing to the company's demise, Reuters reports.

The Kardashians withdrew their support of the product last November after widespread publicity slamming the card as predatory. The card hard a multitude of fees: the card cost $59.95 for 6 months, or $99.95 for a year and there was a $7.95 upkeep fee after the initial period expired. There was even a fee to cancel the card, according to CBS News.

The Connecticut attorney general's office also threatened to conduct an investigation into the card calling the fees "predatory." They also questioned if the "Kard" was actually an illegal financial product.

In response to Revenue Resource Group's breach of contract suit following their withdrawal, the sisters filed an anti-SLAPP motion against the credit card company alleging that the lawsuit had been filed against them based on the sisters' exercising their constitutionally guaranteed right to free speech, reports Reuters.

California's anti-SLAPP statute can be used to file a motion striking a lawsuit that is based on someone's right to free speech. The California legislature had enacted the code due to the "disturbing increase in lawsuits brought primarily to chill the valid exercise of the constitutional rights of freedom and speech."

The California judge could have considered the case one of two ways - as a simple breach of contract case, or a case about freedom of speech - and he chose the latter, ending the Kardashian card lawsuit. The sisters can now put the ill-named "Kardashian Kard" (which has a picture of the three sisters on the front) behind them.

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