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Paris Hilton's Parents Sued by Herbalife over Mistaken Royalties; Uncertain if They Will Invoke "Finders Keepers" Defense

Kathy Hilton waves as she and her husband Rick leave the Twin Towers jail facility after visiting their daughter Paris Hilton Tuesday, June 12, 2007, in Los Angeles.
AP Photo/Nick Ut
Kathy and Rick Hilton File Photo (AP Photo/Nick Ut)

NEW YORK (CBS) Herbalife International, a global weight loss company, filed suit in Los Angeles on Tuesday against Kathy and Rick Hilton regarding a dispute over royalty payments paid by the company to the Hiltons.

In 1992, Rick and Kathy, perhaps best known as the parents of Paris, were contracted to Herbalife to provide services to assist in the launching of a line of weight loss products.

The product line was, according to Herbalife, discontinued in 2002, but the company alleges that the Hiltons have continued to receive royalty payments since then.

In a statement released by Herbalife International, the company states that it is "seeking a determination that we do not owe the Hiltons royalties on any products at this time and that certain historical royalties were paid mistakenly. Herbalife will also seek the return of the mistaken payments."

The company website says that Herbalife International offers high quality products that combine the best of science and nature for a lifetime of good health, as well as being "a proven business opportunity that empowers people to achieve their dreams and financial freedom, and enjoy the rewards of helping others."

"Financial freedom." That's something the Hiltons - and, yes, that's Hiltons as in Hilton Hotels - must worry about constantly.