Kim Kardashian and Scott Disick sued for $40 MILLION over alleged Instagram scam

Kim Kardashian and Scott Disick sued for $40 MILLION over alleged Instagram scam. 

The pair were both named in a lawsuit along with the company Curated for a giveaway which was allegedly a front to sell personal information to advertisers.

The lawsuit claims the 2020 lottery was a sham ... the real purpose of the so-called lottery was for the celebrities to work with an Australian company -- Curated -- which is also being sued, to sell personal information to advertisers.

The suit claims winners were announced but the "winners" Instagram accounts were quickly made private and the plaintiffs are doubtful that everything's on the up and up.

Sources directly connected to Curated tell TMZ, every winner is legitimate, have been awarded their prizes and the company has appropriate paperwork to prove that.

The suit claims the people who entered the contest are getting "invaded by hundreds of advertisers, some of which are soliciting the Plaintiffs with potentially offensive and unwanted content."