Legal

European Apparel Files Lawsuit Against Billabong for Breach of Contract
August 29, 2011

European Apparel has filed suit against Billabong and Brad Bleick for unspecified damages resulting from breach of contract, alleged fraud and alleged conspiracy to commit fraud. The lawsuit alleges that Paul Naude, the executive director and general manager of Billabong, issued written authority in April 2011 to European Apparel authorizing them as a distributor for Billabong in various markets.

US Investigating Work Conditions for Foreign Students at Hershey Warehouse
August 26, 2011

The U.S. Labor Department said that it had opened two investigations into working conditions for foreign cultural-exchange students employed at a Hershey Co. candy warehouse in central Pennsylvania. At the same time, the organizations responsible for employing the students were seeking to resolve a standoff with them by offering a week's paid vacation and cultural-enhancing day trips to Philadelphia, Amish country, and Gettysburg.

Books-A-Million to Buy Leases of 14 Borders Stores
August 26, 2011

Borders and Books-A-Million have reached an agreement for a lease sale involved 14 Borders superstores and specialty stores for $934,209. Citing documents filed in U.S. Bankruptcy Court in Manhattan, the report said the store locations include Portland, Maine; Canton, Ohio; Concord, N.H.; and Mays Landing, N.J.

Ex-Duane Reade CEO, Sentenced to 3 Years In Prison
August 24, 2011

The former Chief Executive of Duane Reade has been sentenced to three years in prison for exaggerating the New York City drugstore chain's income. Anthony Cuti was ordered to pay a $5 million fine.

CVS to Pay $2M in Overcharging, Misleading Ads Settlement
August 23, 2011

CVS Pharmacy has agreed to pay more than $2 million in fines and other costs to settle a consumer protection lawsuit alleging that the drugstore chain overcharged customers for sale items and engaged in misleading advertising.

Urban Outfitters Sued Over New Line of Jailbait Casuals
August 22, 2011

The parents of a 15-year-old model are suing Urban Outfitters — as well as two other retailers and photographer Jason Lee Parry, for putting images of the model "in a blatantly salacious manner with her legs spread, without a bra, revealing portions of her breasts," on T-shirts and other merchandise. They're seeking $28 million in damages.

Starbucks Pays For Firing Dwarf Barista
August 22, 2011

Starbucks will pay $75,000 to settle a disability discrimination lawsuit filed when a barista who has dwarfism was fired after asking for a stool. During Elsa Sallard's training in 2009, a manager decided that she would pose a danger to customer and employees and let her go. In addition to the settlement, Starbucks will provide training on disability issues to managers and supervisors at stores in El Paso, Texas.

Zara Accused Of Slave, Child Labor in Brazil
August 22, 2011

Zara is involved in accusations of slave and child labor at one of its factories in Brazil. The company’s national suppliers started to be investigated by the Bureau of Labor and Employment in May, when 52 people were found working at a factory under unsanitary conditions, producing pants for Zara Brazil.

Esprit Exploring Sale of US, Canadian Operations
August 19, 2011

Esprit is exploring the sale of its U.S. and Canadian operations, according to three people familiar with the matter. Rothschild in New York has been hired to advise Esprit, said the people, who declined to be identified because the process isn’t public. The assets are likely to be shown to a number of private-equity funds, said one of the people.

Houston Fair Trade Standards to Follow Chicago, Milwaukee's Lead
August 19, 2011

A growing grassroots movement is pushing the Houston city council to become the first fair trade city in Texas. The campaign, launched by Houstonian Kendra Penry, calls on the city to follow in the footsteps of Milwaukee and Chicago and purchase fair trade certified goods when available, ensure ongoing education, and commitment to fair trade, and encourage the community to use, sell or provide fair trade products whenever possible.