According to the lawsuit that was filed this week in Waco’s state district court (via KTWX), John Lewis and Richard Clark claim that back in 2013, at a point when Magnolia Real Estate was largely Waco-based and employed a lone real estate agent, Chip Gaines made a deal to buy out the other men’s shares of the company for $2,500 each.
The allegations here aren’t very complicated, but they’re quite damning if revealed to be true.
The litigious side here is that Gaines was allegedly making the Fixer Upper deal with HGTV on the side, without Lewis or Clark’s knowledge, and the manner in which this went down also sounds very sketchy.