Recently, according to BOF, Thirteen Lune, the Los Angeles-based beauty retailer known for championing BIPOC-owned brands, is facing legal turmoil as two of its investors have filed a lawsuit alleging fraud and financial misconduct by co-founder and CEO Nyakio Grieco.
Beauty Generations Fund and Relevance Capital, which collectively invested $3 million in Thirteen Lune in May 2024, lodged the lawsuit in a Los Angeles district court on March 4. The suit accuses Grieco and other defendants—including SNR Capital and its principals, Conor Riley and Piyush Golia—of 17 counts, including fraud, breach of fiduciary duty, and the misappropriation of nearly $200,000 in company funds for personal expenses.
According to court documents, Thirteen Lune’s net revenue plunged from $24 million in 2023 to $7 million in 2024. The lawsuit claims that Grieco and the company failed to properly inform investors when SNR Capital acquired Thirteen Lune in December 2024 through an assignment for the benefit of creditors (ABC), a bankruptcy alternative process. The plaintiffs argue that the acquisition was conducted covertly, at a “significant discount,” causing them financial harm.
In response, the investors are seeking legal intervention, requesting the appointment of a neutral party to oversee Thirteen Lune’s assets, an immediate freeze on fund transfers, and the nullification of the acquisition contract. Additionally, they demand reimbursement of over $165,000 allegedly spent by Grieco on personal expenses, including travel and beauty services.
