Legal

Court Upholds Prison Sentence for Dolce & Gabanna on Tax Evasion Chares
May 1, 2014

In the end, popular opinion wasn't enough to save Domenico Dolce and Stefano Gabanna, the designers behind the highly lucrative fashion label Dolce & Gabbana. Despite pleas on social media and protests from fans, an Italian appeals court has upheld the decision reached last year in a lower court which found the pair guilty of tax evasion. The original criminal charges followed a stiff 343.3 million euro ($439.70 million U.S.) fine ordered payable as restitution last spring.

Texting Lands eBay Exec in Hot Water for Alleged Insider Trading
April 28, 2014

A text message exchange between a senior executive at GSI Commerce and his friend in 2011 before eBay acquired the company has been cited as evidence of insider trading in criminal charges filed by the government. eBay has since rebranded the company eBay Enterprise, where the executive, Chris Saridakis, served as president until January of this year. The Securities and Exchange Commission also alleged that Saridakis violated a duty of trust by providing two family members and two friends with nonpublic information about the pending acquisition of GSI Commerce and encouraged them to trade on it.

Aeropostale Sues H&M Over Trademarked Phrase
April 28, 2014

Teen retailer Aeropostale has filed a lawsuit against H&M over the use of its trademarked "Live Love Dream" phrase on some of its clothing and accessories. According to Aeropostale's complaint, it contacted the Swedish retailer in March after discovering that it had used the phrase without authorization. H&M failed to pull the merchandise, spurring on Aeropostale to take the issue to court. "Despite receiving this notice, and subsequent notice that's also infringing other marks owned by Aeropostale Procurement, H&M continues to display and/or sell products bearing numerous trademarks owned and used by Aeropostale," the complaint reads. 

Pier 1 Imports Sued Over Policy With Pregnant Worker
April 23, 2014

A class-action lawsuit targeting Pier 1 Imports was filed in Santa Clara County Superior Court last week after a woman claimed the company forced her to take unpaid leave because of her pregnancy. The suit states the company's policy toward expectant mothers is unfair and illegal. The woman at the center of the lawsuit, Erin Caselman, works as a sales associate at a San Jose, Calif. Pier 1 Imports store. "All I want is my job back," said Caselman. "I want to be able to work during my pregnancy."

Keurig Green Mountain Subject of Antitrust Lawsuits
April 23, 2014

Keurig Green Mountain's plans to introduce a new single-serve brewer that will lock out competitors has triggered a backlash that includes 14 lawsuits filed in the last two months, alleging violations of both federal and state antitrust and anti-competitive laws. The reaction to the Keurig 2.0, which comes out this year and will only accept K-Cup portion packs manufactured by Keurig, has also been expressed in a barrage of negative comments in the Twitterverse and blogosphere. 

Tuesday Morning, Ex-CEO Settle Suit Over Firing
April 22, 2014

Tuesday Morning Corp. and former CEO Kathleen Mason have agreed to settle a discrimination lawsuit that accused the retailer of firing the executive because she revealed she had breast cancer. Mason's attorney, Rogge Dunn, and Tuesday Morning, each said Monday that they had amicably resolved the matter, but didn't disclose terms of the settlement. Court documents show that a Dallas County judge officially dismissed the lawsuit last Thursday. Mason sued the Dallas-based housewares and home decor company last May, claiming she was fired months after she told the board of her cancer. The company called the allegations meritless.

lululemon Shareholder Suit Over See-Through Pants Dismissed
April 21, 2014

lululemon won dismissal of claims that shareholders lost $2 billion because the athletic-wear company misled them about quality problems with its products, including bleeding colors and see-through yoga pants. U.S. District Judge Katherine Forrest in Manhattan dismissed shareholder claims against the Vancouver-based company, founder and director Dennis Wilson and former chief executive officer Christine McCormick Day. Forrest ruled the investors failed to show that statements made by company officials about product quality were false and misleading. 

Lowe's to Pay $500K Penalty to Settle Lead-Dust Exposure Violations
April 18, 2014

Lowe's, one of the largest home improvement retailers in the U.S., has agreed to pay a penalty of $500,000 for the violation of rules related to minimizing exposure of lead dust during renovations. Lowe's has also agreed to implement a compliance program at its more than 1,700 stores. The U.S Justice Department and Environmental Protection Agency said Lowe's will implement a compliance program nationwide to ensure its contractors minimize lead dust from home renovation activities, as required by the Federal Lead Renovation, Repair and Painting Rule.

CVS Caremark to Pay $20 Million to Settle SEC Sharges
April 9, 2014

CVS, the country's second-largest pharmacy chain, has agreed to pay $20 million to settle charges that it misled investors and used improper accounting techniques to artificially boost its financial earnings, the U.S. Securities and Exchange Commission announced Tuesday. The charges stem from activities that occurred in the third and fourth quarters of 2009, regulators said. According to the SEC, CVS conducted a $1.5 billion bond offering in 2009, but didn't tell investors that it had recently lost "significant" Medicare Part D and contract revenues in its pharmacy benefits business segment. 

lululemon Prevails in Lawsuits Over Yoga Pants Recall
April 7, 2014

A lawsuit accusing lululemon athletica of defrauding shareholders by hiding defects in some yoga pants that led to a costly recall and caused the retailer's stock price to fall should be dismissed, a U.S. judge said. Investors accused lululemon of failing to disclose how its black Luon yoga pants were too sheer, falsely touting its quality control, covering up an inability to address shortfalls, using deep discounts to boost market share, and concealing plans to replace its then-chief executive, Christine Day. The case arose after shoppers found that pants containing lululemon's proprietary Luon fabric were see-through when worn.