Kourtney, Kim and Khloe Kardashian are being sued in a civil lawsuit filed by Hillair Capital Management in Los Angeles, according to TMZ.
The investment firm is seeking more than $180 million (€160m) for their beauty line.
Hillair has accused the sisters of breach of contract, fraud and deceit after it invested more than $10 million (€8.9m) to redeem their struggling make-up line.
The lawsuit claims that the firm agreed to invest in Kardashian Beauty in July 2014 "after former distributor, Boldface, went belly up amidst legal and financial troubles."
"The Kardashians immediately stopped marketing, promoting, and supporting the line and began courting new potential investors to buy out Hillair’s stake. In short, the Kardashians wanted a better, more lucrative deal," court documents said.