Liz Claiborne Hit Hard With $20 Million Lawsuit

Filed Under: Legal Matters Business Blitz Fragranz!

Yikes!

Amidst prior financial woes, Liz Claiborne has been slammed with a $20.2 million dollar lawsuit by their former fragrance distributor, Selective Beauty.

Apparently Selective Beauty, which distributed Juicy Couture and Usher fragrances in Europe, has taken issue with the licensing of Claiborne's fragrances to Elizabeth Arden, claiming the licensing contributed to their recent bankruptcy.

Selective Beauty claims that in 2007 and in 2008, it broadened its partnership with Liz Claiborne and consequently it handled distribution of Juicy Couture in Germany, France, and Italy, and much of the Usher fragrances in the U.K. and Ireland.

As a result of this understanding, Selective Beauty claims it used its own resources to promote each fragrance and in 2008 learned that Claiborne had signed on with Elizabeth Arden to distribute and license the fragrances.

Selective Beauty's lawyers said:

"Thus, in bad faith and without any notice or just cause, Liz Claiborne gave Selective Beauty's now-valuable exclusive distribution rights to Elizabeth Arden, without providing Selective Beauty any compensation for the loss of these rights and the millions of dollars Selective Beauty had already spent promoting Liz Claiborne's products."

Nick Rubino, senior vice president and chief legal officer of Claiborne, commented “We believe the allegations are without merit and we plan to conduct a vigorous defense.”

It sounds like Selective Beauty has a pretty solid case against Claiborne.

And $20.2 million is a lot of money! Goes to show, always honor your prior obligations!

[Image via AP Images.]

Posted: December 2, 2009 at 6:19 pm