Fendi, Wal-Mart settle counterfeit bag dispute
Wed Jun 6, 12:04 PM ET
Italian fashion group Fendi S.R.L. and Wal-Mart Stores Inc.'s (NYSE:WMT - news) Sam's Club warehouse division settled a dispute over allegations that Sam's Club was selling counterfeit Fendi bags in its stores, the companies said on Wednesday.
The companies said Sam's Club will pay Fendi a confidential settlement amount, and Fendi will dismiss its lawsuit against Sam's Club.
Last year, Fendi sued Wal-Mart, accusing the world's largest retailer of selling counterfeit handbags and passing them off as genuine at its Sam's Club warehouse stores.
The suit, filed in U.S. District Court in Manhattan, said Sam's Club stores sold knock-off handbags, wallets and key chains that were identified as "genuine" Fendi products.
The suit by Fendi said that Wal-Mart had never purchased its products and never asked Fendi if any of the items bearing its trademark were genuine.
Fendi products are typically sold at high-end department stores like Neiman Marcus and Saks Fifth Avenue in the United States and Fendi boutiques all over the world.
"During this litigation, Fendi provided us information that the 12 types of bags and wallets specifically listed in its complaint were not genuine," said Doug McMillon, president and CEO of Sam's Club, in a statement. "We accept this information."
Sam's Club said it has removed all Fendi-labeled bags, wallets and scarves from its shelves. Customers who purchased bags, wallets, or scarves with a Fendi label at a Sam's Club can return the item for a full refund, the company said.
As of April 30, Wal-Mart operated 582 Sam's Clubs in the United States. Customers buy memberships at Sam's Club in order to shop in the warehouses, which sell everything from bulk groceries to diamond jewelry to office supplies.
Wal-Mart shares were up 25 cents at $50.77 in late morning trading on the New York Stock Exchange.
Copyright © 2007 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
Wed Jun 6, 12:04 PM ET
Italian fashion group Fendi S.R.L. and Wal-Mart Stores Inc.'s (NYSE:WMT - news) Sam's Club warehouse division settled a dispute over allegations that Sam's Club was selling counterfeit Fendi bags in its stores, the companies said on Wednesday.
The companies said Sam's Club will pay Fendi a confidential settlement amount, and Fendi will dismiss its lawsuit against Sam's Club.
Last year, Fendi sued Wal-Mart, accusing the world's largest retailer of selling counterfeit handbags and passing them off as genuine at its Sam's Club warehouse stores.
The suit, filed in U.S. District Court in Manhattan, said Sam's Club stores sold knock-off handbags, wallets and key chains that were identified as "genuine" Fendi products.
The suit by Fendi said that Wal-Mart had never purchased its products and never asked Fendi if any of the items bearing its trademark were genuine.
Fendi products are typically sold at high-end department stores like Neiman Marcus and Saks Fifth Avenue in the United States and Fendi boutiques all over the world.
"During this litigation, Fendi provided us information that the 12 types of bags and wallets specifically listed in its complaint were not genuine," said Doug McMillon, president and CEO of Sam's Club, in a statement. "We accept this information."
Sam's Club said it has removed all Fendi-labeled bags, wallets and scarves from its shelves. Customers who purchased bags, wallets, or scarves with a Fendi label at a Sam's Club can return the item for a full refund, the company said.
As of April 30, Wal-Mart operated 582 Sam's Clubs in the United States. Customers buy memberships at Sam's Club in order to shop in the warehouses, which sell everything from bulk groceries to diamond jewelry to office supplies.
Wal-Mart shares were up 25 cents at $50.77 in late morning trading on the New York Stock Exchange.
Copyright © 2007 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.
