Fendi Receives $2.5 Million Settlement with Filene’s

In Reports, What's New, Industry News by Accessories Staff

New York–Fendi has reached a $2.5 million settlement last week that resolved its 2006 lawsuit claiming that Filene’s Basement purchased and sold counterfeit Fendi products.

The case was brought against both Filene’s, which later filed for bankruptcy, and its parent company during the relevant time period, Retail Ventures (RVI), a Fendi spokesperson stated.

In addition to the $2.5 million payment from the FB Liquidating Estate, RVI entered into a permanent injunction on consent that has been entered as an order in the U.S. District Court for the Southern District of New York. The injunction bans RVI from selling any Fendi branded products without Fendi’s prior written authorization

LVMH-owned brand said the settlement agreement also requires that the defendants turn over to all Fendi branded products in their possession for disposal by Fendi. The FB Liquidating Estate has also made an additional $50,000 payment for advertisements announcing the settlement which will run in various publications.

Michael Burke, chairman and ceo of Fendi, said: “Fendi takes very seriously the responsibility we have to protect our brand, our trademarks and our customers. Retailers must recognize and uphold their obligation to verify their sourcing and sell only authentic goods.

The Filene’s/RVI settlement ensures that the burden of ascertaining authenticity rests squarely where it should—with the retailer.”

Burke said the case was complicated by Filene’s bankruptcy filing but the company wanted to see the case through. Filene’s Basement emerged from bankruptcy protection in 2009 after being purchased by off-price retailer Syms Corp.

Fendi has also received a $4.7 million contempt judgment against Burlington Coat Factory Warehouse for similar allegations.

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