Nicky Hilton claims her high-end fashion line was a colossal failure ... and it's all because her partners were irresponsible liars who pissed away the company's cash so they could live like ballers.
Hilton claims it all started in 2006 ... when she inked a deal with Eliyahu Cohen and the Asher Group to launch Nicky Hilton Worldwide -- which would market high-end fashion products under Nicky's name.
Hilton claims the Asher Group promised to provide $4.9 million in financing for the operation AND pay Nicky a guaranteed annual salary of $250k plus a 10% increase every year.
But in a lawsuit filed in L.A. County Superior Court, Nicky claims the Asher Group dropped the ball ... failing to secure the $4.9 million ... never paying her salary ... and squandering what money the company did have on stupid personal expenses.
In fact, Nicky claims Asher blew $9k per month on a personal assistant who "spent most of her time running personal errands for Asher and other tasks unrelated to NHW business."
Hilton claims Asher and Cohen's irresponsible conduct caused her company to crumble -- leaving Nicky to "clean up the mess." Now, she's demanding AT LEAST $5 mil in damages to make things right.