The fashion house has good reason to celebrate thanks to a $2.5 million settlement that the bankrupt Filene's Basement will have to cough up as part of a counterfeit lawsuit filed in 2006, WWD reports.
As we previously reported, Fendi had won an injunction against the troubled Filene's -- now owned by Syms Corp. -- after accusing the discount retailer of selling fake Fendi goods allegedly originating from importer Ashley Reed Trading Inc.
Because the importer, as Fendi CEO Michael Burke noted to WWD, reportedly has no assets in the United States, Fendi had to target the retailers who allegedly sold the questionable goods.
Along with Filene's Basement, that includes Burlington Coat Factory Warehouse, which owes Fendi a $4.7 million contempt judgment for violating an injunction, though counterfeit claims are still pending.
Meanwhile, Filene's bankruptcy estate and its co-defendant, Retail Ventures Inc,. will be forced to pay the hefty settlement by the end of the month, and will be banned from selling Fendi merchandise without written permission, according to WWD.
And though Burke tells WWD that Ashley Reed had the allegedly fake products "manufactured in China, shipped to Italy, and transshipped to the U.S. with fake invoices using fake business cards," the importer's lawyer Gerard Dunne is denying the claims.
"The court found six bags that were counterfeit over thousands sold over the years," Dunne says.
"The goods are gray-market goods -- legitimate goods sold outside of the U.S. and shipped here. Most of our goods are from duty free shops and Fendi outlets in Italy. We don't believe they were counterfeit."
Tell it to the judge, buddy!
In other Fendi news, get the scoop on the covetable looks from "I Am Love."