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Kyle Richards was spotted with rumored flame Morgan Wade on Thursday, just two days after her Real Housewives of Beverly Hills co-star, Garcelle Beauvais, commented on the rumors surrounding their relationship.

As estranged husband Mauricio Umansky, 54, suffered a minor setback in a lawsuit over the Payroll Protection Program (PPP) and CARES Act loans he obtained amid the COVID-19 pandemic, Kyle, 56, and Morgan, 30, ventured out for coffee with Teddi Mellencamp, 43, in La Quinta, California, where Kyle owns a home and store.

In photos shared by Page Six on January 16, Kyle and Morgan, who were both wearing hats and sunglasses, stayed at one another’s sides as Teddi walked ahead.

Kyle Richards spotted with Morgan Wade after blasting ‘a–hole’ Garcelle Beauvais for lesbian comment pic.twitter.com/yN2My9L90l

— Page Six (@PageSix) January 17, 2025

During Tuesday’s episode of RHOBH, Garcelle, 58, told her castmate, “If you want to be a lesbian, be a lesbian,” as they addressed her separation from Mauricio. Then, on the After Show, Kyle slammed her as an “a**hole” over the comment.

“What was really going through my head was, ‘You’re being an a**hole right now,’ and don’t try to act like, ‘Oopsy daisies,’ you know exactly what you’re doing,” Kyle stated. “I was thinking, ‘If you’re thinking you’re going to get a reaction from me or I’m going to be offended, I’m not.’”

As Kyle continues to face rumors about her sexuality, Mauricio and his real estate firm, The Agency, have been accused of stealing “over $3.5 million from American taxpayers.”

According to court documents obtained by In Touch Weekly on January 16, a judge threw out the claims Relator LLC made against Mauricio and William Rose, the president of The Agency, in regard to the loans. However, he did not agree to dismiss the company’s allegations against The Agency itself.

In his decision, the judge explained that Relator LLC did not have specific claims against the men pertaining to the alleged fraud, only mentioned them “a few times” in the case, and did not do so “in connection with any specific allegation that they themselves falsely certified information in the PPP applications or participated in the fraudulent certification.”

In their lawsuit against The Agency, Mauricio, and William, Relator LLC accused the men and the firm of taking out loans they did not need.

“This is a case about greed during a national health emergency,” documents stated, claiming The Agency had $6 billion in sales in 2019, $6.5 billion in 2020, and $11.2 billion in 2021.

Meanwhile, in their response, the defendants accused Relator LLC of obtaining their claims “through the use of guesswork, speculation, and contrived facts.”

“Relator is in no way connected to Defendants: Relator was not previously employed by Defendants nor is it otherwise affiliated with Defendants,” they declared. “Relator therefore cannot ascertain or know firsthand the facts surrounding The Agency’s application for PPP loans in the shadow of the COVID-19 global pandemic.”

Their lawyer went on to say, “Based on publicly available gross sales figures and PPP loan information, Relator makes conclusory statements about The Agency’s financial position that are illogical and unfounded. Relator improperly equates gross sales figures with profits and liquidity, speculates about what percentage of real estate sales The Agency would have received, and—without any information whatsoever — asserts that The Agency falsified payroll numbers.”

The Real Housewives of Beverly Hills season 14 airs Tuesdays at 8/7c on Bravo.