By Adam Markovitz
January 10, 2011 at 11:03 PM EST

Desperate Housewives actress Eva Longoria is being sued for allegedly charging an illegal interest rate on her $1 million investment in her restaurant group, Beso. According to a lawsuit filed by co-investor Mali Nachum in Encino, Calf., the company failed to bring action against Longoria after being informed that the star’s eight percent interest rate allegedly violates California law and would eventually have been worth $4.6 million. Nachum is asking for no less that $4 million in damages. “This is a desperate reaction in a lawsuit without merit by prior partners who, through their unauthorized and fraudulent actions, required Eva Longoria to seek reorganization protection through bankruptcy court in Nevada,” said a rep for Longoria in a statement. The first Beso restaurant opened in Hollywood in 2008, followed by a second restaurant and a club, Eve, in Las Vegas. (Beso Las Vegas and Eve recently filed for bankruptcy.)