Supermodel and entrepreneur Tyra Banks is facing a fresh legal storm after ambitious plans to expand her Smize & Dream ice cream brand reportedly collapsed into a $3 million lawsuit, casting uncertainty over the future of the celebrity-backed dessert venture.

Court filings reveal that the dispute centers on alleged breaches of contract tied to the brand’s planned retail and distribution expansion. The lawsuit, filed by a former business partner, claims that financial commitments connected to production, logistics, and rollout strategies were not honored, resulting in significant losses. Banks and her representatives have not publicly conceded wrongdoing, and the matter remains subject to legal review.

Smize & Dream launched with heavy buzz, positioning itself as a premium, “joy-forward” ice cream brand with unconventional flavors and an emphasis on experiential retail. The project was widely seen as an extension of Banks’ broader reinvention as a business mogul following her television success with America’s Next Top Model. Early pop-ups and media appearances generated excitement, but insiders say scaling the brand proved more complex than initially anticipated.

Legal analysts note that celebrity-founded consumer brands often face challenges when transitioning from concept-driven launches to sustained operations. High overhead costs, aggressive expansion timelines, and unclear partner roles can quickly turn momentum into litigation if expectations are misaligned.

While the lawsuit seeks approximately $3 million in damages, it does not signal the end of the Smize brand outright. Industry observers say the outcome will likely hinge on contractual language and whether the court finds evidence of misrepresentation or unmet obligations. For now, the case underscores the risks that come with celebrity entrepreneurship in competitive consumer markets.

Tyra Banks has yet to issue a detailed public response, but the situation marks a rare stumble in a career long defined by reinvention and resilience. As the legal battle unfolds, the fate of Smize & Dream once pitched as a sweet new chapter in Banks’ empire now rests in the hands of the courts.