"Real Housewives of Beverly Hills" star Taylor Armstrong and her soon-to-be ex-husband are now co-defendants in a lawsuit accusing them of shady business dealings.
Two weeks after Taylor filed to divorce Russell Armstrong ... they're both being sued over allegedly misleading investors in a company called NuWay Digital Systems, Inc. (NDS).
Russell -- a venture capitalist -- was CEO of NDS -- which held interest in another company called MyMedicalRecords.com (MMR).
In the lawsuit, MMR claims Russell collected more than a million dollars by selling off NDS shares to investors who were told they were getting a piece of MMR.
The suit claims Taylor and Russell "successfully and secretly" funneled money away from MMR and into their own pockets -- allegedly using the money to invest in a schmancy restaurant with Eva Longoria ... and to redecorate their mansion.
MMR and the Armstrongs reached a settlement over the whole mess ... and the lawsuit claims they have breached that agreement.
MMR wants $1.5 million to make things right.
UPDATE: Russell's attorney Ronald Richards claims MMR is struggling economically and describes the lawsuit as "groundless" and a "shakedown."
"HOUSEWIVES" TAYLOR & HUBBY
7/29/2011 5:20 PM PDT BY TMZ STAFF
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