The Associated Press is reporting that Teri Hatcher is being sued by the cosmetic company Hydroderm. According to the article,

Teri Hatcher is being told to pucker up and pay $2.4 million to a skin-care products company that says she promoted the wrong lip gloss.

Hydroderm’s lawsuit, filed in Los Angeles Superior Court on Tuesday, claims that a 2005 agreement with ISBE Productions, Hatcher’s production company, stipulated the star of ABC’s “Desperate Housewives” wouldn’t endorse other competing products as part of a $2.4 million endorsement deal. (Source)

According to AP (I’m still trying to get my own copy of the Complaint), the lawsuit alleges that

Hatcher was also promoting CityLips, a lip plumper made by City Cosmetics that competes with Hydroderm’s lip plumper, called Volumizing Lip Serum.

The lawsuit also alleges that Hatcher promoted other products, but doesn’t name them.

Now, exclusive promotion deals are commonplace in many industries; especially in the entertainment industry. If Hatcher did in fact breach the exclusive promotional deal, she could be in big trouble. However, according to her attorney, Alan Wertheimer, the lawsuit is an

“unjustified and public assault on Teri Hatcher’s good name, reputation and celebrity in a transparent and pathetic effort to distract from its own failure to live up to its end of the agreement.”

Wertheimer said Hatcher complied with all of her contractual obligations despite “a frustrating series of changes in the ownership and management of Hydroderm over the last several years.”

Obviously, two sides to every story. Read the full AP story here.