5 Fashion Lawsuits to Monitor in 2024

The fashion and retail industries are no strangers to high-stakes legal battles, and 2024 has certainly set the stage for some gripping courtroom dramas. The typical fashion lawsuits often revolve around issues such as antitrust and intellectual property (IP) disputes, trademark infringement, data security, class action and shareholder lawsuits. The industry's highly competitive nature means that brands like Shein and Temu frequently face antitrust and IP disputes, including allegations of coercing suppliers, which can reshape competitive practices and supplier relationships. Data security has also emerged as a critical concern, evidenced by class action lawsuits against Temu, highlighting the increasing emphasis on cybersecurity in the digital age.

Trademark infringement cases, such as Chanel vs. What Goes Around Comes Around (WGACA) and Thom Browne vs. Adidas, show the importance of brand protection and the complexities surrounding design patents and marketing practices. Additionally, shareholder lawsuits like the one faced by Farfetch over misleading statements reflect the transparency and corporate governance issues that public companies must navigate. Let's dive into the key disputes and evolving timelines redefining the industry this year.

1. Battle of the Fast Fashion Giants: Shein vs. Temu

   Temu accused Shein of “mafia-style intimidation” and anti-competitive behavior, including monopolizing suppliers and using social media influencers to criticize Temu.
   Allegations: Violations of antitrust laws and competitive tactics.

   • Timeline:
     • July 2023: Temu filed a complaint against Shein, accusing it of violating U.S. antitrust laws by coercing suppliers into avoiding business with Temu.
     • October 2023: Both Shein and Temu dismissed this case, alongside another where Shein accused Temu of mimicry on social media.
     • December 2023: Temu filed a new legal complaint, alleging Shein engaged in unfair competition and intellectual property infringement.
     • January 2, 2024: Shein and Temu asked the court to extend Shein’s response deadline to February 12, 2024.

2. • Temu's Data Breach and Privacy Issues

     Temu faced several class action suits due to allegations of failing to secure customer data, wiretapping communications, and misuse of personal data.
     Allegations: Data theft, privacy breaches, and placement of malware.

     • Timeline:
       • September 2023: The first class action lawsuit was filed against Temu, alleging failure to secure customers' personal and financial data.
       • January 9, 2024: Plaintiffs planned to file an amended complaint, with Temu’s response due subsequently.
       • November 2023: Another lawsuit claimed Temu misled consumers about data collection and intentionally loaded dangerous malware onto users’ devices.
       • January 3, 2024: A judge approved an extension for Temu’s response to February 9, 2024.

   • Chanel vs. What Goes Around Comes Around (WGACA)

     Chanel sued WGACA for counterfeiting, trademark infringement, false advertising, and unfair competition.
     Allegations: Unauthorized resale of Chanel-branded products and misleading advertising.

     • Timeline:
       • 2018: Chanel filed a lawsuit against WGACA, alleging false advertising and sales of counterfeit products.
       • January 9, 2024: The case headed to trial.
       • February 6, 2024: A New York jury unanimously sided with Chanel, but post-verdict motions and additional remedies are still pending.

   • Thom Browne vs. Adidas

     Adidas claimed Thom Browne’s use of four-bar stripes infringed on its three-stripe trademark.
     Allegations: Trademark infringement and unfair competition.

     • Timeline:
       • 2012: Adidas initially filed a trademark infringement complaint against Thom Browne.
       • January 2023: A jury found Thom Browne not liable.
       • November 2023: Adidas requested a new trial, alleging withheld evidence.
       • January 4, 2024: Adidas filed more documents to support its request for a new trial.

   • Farfetch vs. Shareholders

     Lawsuits of this nature typically involve shareholder disputes over company management, financial misrepresentations, or breaches of fiduciary duties.

     • Timeline:
       • December 2023: Coupang announced plans to acquire Farfetch in a $500 million deal.
       • March 9 to August 17, 2023: The lawsuit alleges Farfetch made false statements about growth and failed to disclose key challenges.
       • January 8, 2024: Farfetch’s attorneys requested to move the case from Maryland to the Southern District of New York.