Hydroderm Beauty Company has lost a $2 million lawsuit filed against Desperate Housewives actress Teri Hatcher. In December 2007 the company accused the actress of promoting rival products while still working under contract for Hydroderm.

Marie Claire reports that the actress was able to prove that she had not violated the agreement by any means and asked to move the case to arbitration.

The star, who was paid £2.4 million to promote Hydroderm products, insists her promotion of CityLips’ lip plumper did not affect the deal, and that management changes constantly left her unsure of the terms of her conract.

According to Titter Tatter, the matter will be solved out of court.

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