Beanie Babies’ Warner sues after fractured relationship leads to ‘eight-figure’ claim
Beanie Babies creator Ty Warner has taken the multimillion-dollar fallout over a fractured personal relationship to federal court in Chicago, records show.
Warner, who once pleaded guilty to tax evasion here only to walk away with probation, filed a five-page lawsuit Friday against Kathryn Zimmie of Ohio. He claims the two had a personal and business relationship and “spent a significant amount of time” living together in Illinois. Zimmie contends they even discussed getting married, according to Warner.
But Zimmie ended their personal relationship in October, according to Warner’s lawsuit. And Zimmie’s attorney has since sought compensation for Zimmie “in an eight-figure range” as a result of “an implied or oral agreement” with Warner, it alleges.
Neither Zimmie nor Warner’s lawyer could immediately be reached for comment Monday. Crain’s Chicago Business first reported on the filing of the complaint.
Warner’s lawsuit alleged that Zimmie’s attorney first reached out to Warner Dec. 7 and then followed up with Warner’s lawyers Jan. 29. Zimmie has insisted that she “devoted her efforts” to Warner’s needs and interests, helping him design hotel rooms, restaurants, and marketing materials for his hotels and the Beanie Babies toy line, according to the lawsuit.
“Ms. Zimmie claims that Mr. Warner purportedly told her that if she took care of him, he would always take care of her,” Warner’s lawyers wrote in the lawsuit. “As a result, Ms. Zimmie claims an implied or oral contract was formed and that she has a palimony claim against Mr. Warner arising out of this contract.”
Warner claims the only agreement between them is a 2018 consulting deal between Zimmie and her company, Cleveland Designs Consultants LLC, and Ty Inc. and Ty Warner Hotels and Resorts LLC. For that, his lawsuit says Zimmie is being paid $16,666 a month. He wants a judge to rule that he has no other implied or oral obligation to Zimmie.
More than seven years ago, Warner admitted in a plea agreement that he’d hidden $24 million in secret Swiss bank accounts between 1999 and 2007, on which prosecutors said he should have paid $5.6 million in taxes. However, U.S. District Judge Charles Kocoras wound up sentencing Warner to only two years of probation and 500 hours of community service, citing Warner’s “overwhelming” charitable record.