Shareholder Dispute Involving Two New York Beauty Businesses Heads to Court

A shareholder dispute involving two New York beauty businesses is moving through Queens County Supreme Court, where four investors accuse two controlling shareholders of misusing company funds, withholding financial records and improperly altering ownership interests.

According to a verified complaint filed on July 8, plaintiffs Jing Xie, Wei Song, Jiaru Liu and Cecile Lin sued Sisi Lv, Mary Fan and Snow Home LLC. Kasuga Beauty Corp. and Kasuga Aesthetics Corp. are named as nominal defendants in the case.

The plaintiffs allege they invested hundreds of thousands of dollars in the two businesses but were later denied access to company books and records while company assets were diverted for the personal benefit of the controlling shareholders. Among the allegations is a $220,000 transfer from Kasuga Beauty to Snow Home LLC, which the complaint claims was unrelated to the company's business operations. The lawsuit also challenges certain ownership transfers and alleges that company funds were used for unauthorized personal expenses.

The plaintiffs are asking the court to confirm their ownership interests, order a full accounting of both companies, recover funds they allege were improperly diverted, and grant other relief.

Attorney M. Todd Parker, who represents the plaintiffs, said his clients "invested their hard-earned money" in the two businesses but were subsequently excluded from the companies' books and records while company funds were allegedly used for the personal benefit of the controlling shareholders.

"Our clients are asking the Court to confirm their ownership interests, order a full accounting of both companies, and return the diverted funds," Parker said. "We look forward to proving these claims in court."

The case remains in its early stages, and the allegations in the complaint have not been proven in court.