Chris and Bec Judd's activewear line is being sued amid reports of sexual harassment.

Chris and Bec Judd’s luxury activewear line, Jaggad, is being sued by a former employee amid reports of in-house bullying and harassment.

Former general manager Nancy Mo is suing both Jaggad and her former boss, co-founder Steven Greene, for sexual discrimination and unfair dismissal, alleging she lost her job after she fell pregnant, the Herald Sun reports.

Ms Mo was hired in July 2015 as general manager, and made redundant in January.

In Federal Court documents filed this week, Ms Mo alleges Greene – a former AFL player – bullied staff by routinely yelling and threatening their jobs.

No complaints have been made towards Chris and Bec Judd.

She also claims he used sexually explicit language while in the office, referencing threesomes and having sex with women.

According the paper, Ms Mo also says the company’s 2016 ambassador, model Laura Henshaw, had been an unwilling victim of the co-founder’s sexual harassment.

Chris and Bec Judd with Steven and Michelle Greene. Image: Instagram.

“Laura is hot, she’s the next big thing,” Mo alleges he said.

“Now I just need to convince Michelle [Greene's wife] to let me have sex with her, or she can join us in a threesome.”

Mr Greene is also accused of saying he hoped one former employee had a "horrible accident and dies", describing them as a "c*** of a person".

In an interview with the Herald Sun, Ms Mo's husband Jason Dale said his wife was left "very traumatised" by the ordeal.

“They think they’re untouchable,” he said.

“They think their brand is untouchable, and we just want the truth to come out.”

In a statement to Mamamia, a spokesperson for Jaggad said the "matter is currently before the Federal Court" and therefore "will not be making any further comments at this time".