Alex and Ani, the Rhode Island-based charm bracelet company founded by multimillionaire Carolyn Rafaelian, alleges in a lawsuit that Bank of America, one of its lenders, is violating federal law by engaging in gender discrimination against the women-led company.
The lawsuit, filed in the Southern District of New York on Thursday, seeks $1.1 billion in damages and claims that Bank of America’s “gender bias and greed” poses an “existential threat” to Alex and Ani’s business.
According to the lawsuit, Bank of America falsely declared in December 2018 that Alex and Ani defaulted on its $170 million loan, which it took out to buy a factory, and then cut off its access to a $50 million revolving line of credit. Alex and Ani did default a few times, but Bank of America waived the default and amended their agreement, the company says. (A lender and borrower can come to an agreement to avoid a default.)
Read more about the Alex and Ani lawsuit against Bank of America on the Forbes.com website HERE