Tony Hsieh, former Zappos Chief Executive Officer, died without a will at age 46 in 2020, prompting a yearslong battle over his $500 million estate. Now, longtime friend and business partner Jenn Lim is suing Hsieh’s family over ownership of “Delivering Happiness,” Hsieh’s workplace culture brand.
It is reported that in the last year of his life, Hsieh struggled with alcohol and drug use, culminating in a “six-month downward spiral.” After retiring as chief executive of Zappos and selling his company to Amazon for more than $1 billion, friends say Hsieh began to struggle.
The entrepreneur began to act erratically, making real estate and financial deals worth millions. The walls of his home were covered with sticky notes outlining business plans and contracts, and he surrounded himself with a new group of friends who indulged his eccentric behavior. He ultimately died from injuries sustained in a house fire after his family reported his fascination with fire had intensified. One day before the fire, Hsieh was planning to check himself into a rehabilitation center.
Prior to the final tumultuous year, Hsieh was known for promoting happiness among workers at Zappos and delivered this philosophy in a 2010 bestselling book, “Delivering Happiness: A Path to Profits, Passion, and Purpose.” This philosophy was adapted into a brand and consulting firm, which Hsieh and Lim jointly owned. Lim is currently CEO of the Delivering Happiness business, holding a 50% stake, with the other half owned by Hsieh’s estate.
According to Lim’s suit, Hsieh’s estate has accused Lim of acting improperly while managing the company. Lim too published a book, “Beyond Happiness: How Authentic Leaders Prioritize Purpose and People for Growth and Impact,” in which she took a $517,000 loan from Delivering Happiness to fund. She began paying the loan back earlier this year; however, Hsieh’s estate claims the loan is fraudulent and is demanding full ownership of the Delivering Happiness intellectual property.
For more information see Katherine Sayre “Dispute Erupts Over Former Zappos CEO Tony Hsieh’s Happiness Brand” The Wall Street Jouranl, June 9, 2023.
Special thanks to Joel C. Dobris (Professor of Law, UC Davis School of Law) for bringing this article to my attention.
https://lawprofessors.typepad.com/trusts_estates_prof/2023/06/dispute-erupts-over-former-zappos-ceo-tony-hsiehs-happiness-brand.html