“Fixer Upper” star Chip Gaines faces million-dollar fraud lawsuit

John Lewis and Richard Clark were bought out for $2,500 each in 2013

In this March 29, 2016 photo, Joanna Gaines, left, and Chip Gaines pose for a portrait in New York to promote their home improvement show, "Fixer Upper," on HGTV. (Photo by Brian Ach/Invision/AP)

WACO, TX. (KWKT) — Chip Gaines of “Fixer Upper” fame faces a lawsuit accusing him of fraud and demanding more than a million dollars in relief.

John Lewis and Richard Clark say Gaines convinced them to sell their pieces of Magnolia Realty for just $2,500 each in May of 2013. They say Gaines told them “there are no assets” and the company is “less than worthless.” Days later, Gaines announced HGTV and Scripps Networks planned to produce the television show. The lawsuit filed Wednesday in McLennan County’s 170th District Court also says Gaines concealed that information, which directly affected the value of Magnolia Realty.

The plaintiffs also claim in the lawsuit that Gaines sent the following text message when Clark became upset that Gaines was trying to lower the buyout:

“You better tell Rick to be careful. I don’t come from the nerdy prep school he’s from. And when people talk to me that way they get their [expletive] kicked.”

They say Gaines also threatened to start a competing real estate brokerage if they did not sell.

Jordan Mayfield, the attorney representing Chip Gaines, released a statement, which reads:

“We are confident that these claims will be found to be meritless, and it is disappointing to see people try to take advantage of the hard work and success of Chip and Joanna Gaines.”\

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