Aurora James, the fashion designer who created the «Tax the Rich» dress worn by Rep. Alexandria Ocasio-Cortez at the 2021 Met Gala, is facing a seven-figure lawsuit from a small business that claims it was left unpaid after producing her charity gala earlier this year.
The Gathery Inc., an event production company, filed the suit in New York Supreme Court against James, her nonprofit Fifteen Percent Pledge, and its fiscal sponsor, Philanthropic Ventures Foundation. The plaintiffs are seeking at least $1,082,965 in damages, along with contractually owed interest and additional financial damages, according to court documents.
The dispute stems from the Fifteen Percent Pledge Gala 2026, held in February at Paramount Studios in Los Angeles. The event, which raised money for Black business owners, drew a star-studded guest list that included Meghan Markle and Kimora Lee Simmons. The Gathery had produced the annual fundraiser in both 2024 and 2025 without issue, according to the lawsuit.
Court documents allege that James's nonprofit made two initial deposits toward the $1.5 million bill before ceasing all payments in November 2025. The suit claims James «personally directed the project and repeatedly induced TGI to continue performing even after payment defaults had begun.»
The filing further states that James approved change orders expanding the scope and cost of the event, signed a February 4, 2026, amendment admitting breach, and assured The Gathery that payment would be forthcoming — all while knowing, or recklessly disregarding, that the nonprofit lacked the ability to pay.
James founded the Fifteen Percent Pledge in 2020 in response to the murder of George Floyd. The organization encourages retailers to dedicate 15 percent of their shelf space to products created by Black-owned businesses. Its website describes it as a «racial equity and economic justice non-profit organization working toward a more equitable economic future.»
The lawsuit is not James's first brush with allegations of missed payments. In 2021, she was reported to have run up tax debts through Cultural Brokerage Agency, the parent company of her Brother Vellies fashion brand. Those included three open state tax warrants from 2018 to 2019 totaling $14,798 in unpaid employee withholding, plus 15 warrants since 2015. The company has also faced multiple legal claims alleging it repeatedly failed to pay worker benefits.
Legal and political observers noted the apparent irony of an organization dedicated to supporting small businesses being accused of stiffing one for more than $1 million. «These are still allegations that have to be proven in court, but there's an undeniable irony in an organization dedicated to supporting small businesses being accused of stiffing one for more than $1 million,» former Palm Beach County State Attorney Dave Aronberg said. «If you preach economic fairness, you have to practice it too.»
Kaivon Shroff, a former digital organizer for Hillary Clinton's campaign, pointed to the broader political symbolism. «AOC made Aurora James's 'Tax the Rich' dress one of the defining political images of the Met Gala and excess wealth at a time of great economic inequality, so the irony here is impossible to miss,» Shroff said. He added that James «built her public brand around economic justice and supporting Black-owned businesses» while being sued by a small business. «That is exactly the kind of contradiction opponents seize on to argue that the politics are performative.»
Shroff warned that the damage from such allegations extends beyond the individual. «Movements built around economic fairness and supporting marginalized businesses are so important, and they depend heavily on credibility and goodwill,» he said. «When the people most visibly associated with those causes are accused of behaving in ways that seem completely at odds with the message, the damage does not stop with the individual. It gives critics an easy way to discredit the cause itself.»
Fox News Digital reached out to James's attorney for comment but did not immediately receive a response. The lawsuit remains pending in New York Supreme Court.