Actress Kate Hudson is again in the headlines. This time, it’s not bad luck in love, but in business.

In June, the actress and hairstylist David Babaii developed and manufactured a line of eco-friendly hair care products called David Babaii for Wildaid, which are based on a special ingredient: volcanic ash. And it’s this unique ingredient that caused all the trouble for the two.

Hudson is being sued by a company called 220 Laboratories, which claims that they were the ones who discovered the confidential ingredient and they had entered into a spoken agreement in August 2006 with Hudson and Babaii, to develop the hair care line together.

The agreement established the lab as the sole providers of the range's raw materials. But apparently, when 220 Laboratories showed Hudson and Babaii the ingredient list, the duo took the ash samples and went hunting for a better deal. They eventually took the ingredient list to a competing manufacturer who agreed to work on the line at a lower cost than 220 Laboratories.

The plaintiffs also claim that Hudson and her hairstylist also used promotional footage of the 220 team collecting ash in Vanuatu to promote their products after they signed the deal with Universal.

220 Laboratories calls the duo “willful and malicious” and is suing for misappropriation of trade secrets, fraud, and breach of contract and confidence.

Hudson’s publicist, Brad Cafarelli, told E! News on Monday that the actress did not know the plaintiffs and had never met them or spoken with them.

“Her representatives believe that the claims are baseless and without merit and intend to vigorously defend the lawsuit,” Cafarelli added.