Morphe

Morphe built its empire on influencer collaborations — James Charles, Jaclyn Hill, Jeffree Star — but behind the glittering palettes was a company selling products the FDA flagged as unsafe and a financial house of cards that collapsed in January 2023. When Morphe's parent company Forma Brands filed for Chapter 11 bankruptcy, court filings revealed it owed James Charles $2 million, Jaclyn Hill $2 million, and Jeffree Star $1.4 million in unpaid royalties — money those creators may never fully recover.

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▸ Case #1 — FDA-Banned Color Additives Class Action (2022) A 52-page federal class action filed April 1, 2022 in California alleged Morphe eyeshadow palettes and eyeliners contained color additives the FDA has explicitly deemed unsafe for eye-area use, including FD&C Red No. 4, D&C Violet No. 2, and over 20 other banned dyes. Plaintiffs alleged the products caused severe eye irritation, skin staining, rashes, and allergic reactions. The lawsuit named collaborator palettes co-branded with James Charles, Jaclyn Hill, and Madison Beer. The case was stayed after Forma Brands' bankruptcy filing.

▸ Case #2 — Chapter 11 Bankruptcy & Influencer Debt (2023) Forma Brands filed for Chapter 11 bankruptcy on January 12, 2023. Unsecured creditor filings showed Morphe owed eight-figure sums to creators who trusted the brand with their names. The company had fueled growth through influencer exclusivity deals it could not ultimately honor, leaving creators with large unpaid balances and no clear path to recovery.