Legal

American Apparel Outlines Graphic Allegations Against Founder Dov Charney in Recent Court Filings
June 24, 2015 at 1:41 pm

After getting fired from American Apparel in December for “alleged misconduct and violations of company policy,” former CEO and founder Dov Charney is not going down without a fight. The company is now responding to a recent slew of defamations lawsuits he’s filed against it, outlining some pretty graphic allegations in recent court filings. American…

New Bill Would Require Online Sellers to Collect Sales Tax
June 17, 2015 at 3:59 pm

The Marketplace Fairness Act failed to secure Congressional approval again last year, but was reintroduced in the Senate in March. This week, a different version surfaced in the House. Utah Rep. Jason Chaffetz introduced the Remote Transactions Parity Act of 2015 on Monday. Retail groups including the National Retail Federation (NRF) and Retail Industry Leaders…

Anna’s Linens Files for Chapter 11
June 17, 2015 at 3:52 pm

Anna’s Linens Inc. in Costa Mesa, Calif. filed for Chapter 11 bankruptcy protection on June 14 with the U.S. Bankruptcy Court, Central District of California. The home goods retailer is also negotiating a sale with DW Partners LP in New York. Anna’s Linens said in its bankruptcy filings that its liabilities range between $100 million…

Michael Kors Settles U.S. Lawsuit Alleging Deceptive Price Tags
June 15, 2015 at 2:19 pm

Michael Kors Holdings Ltd agreed to pay $4.88 million and change its sales practices to settle a class-action lawsuit claiming it used deceptive price tags at its outlet stores to fool shoppers into believing they were getting big bargains. The preliminary settlement was filed on Friday in Manhattan federal court, and requires court approval. Michael…

New York AG Questions eBay, PayPal on Revised User Agreements
June 12, 2015 at 3:37 pm

New York law enforcement officials have written to eBay Inc. and PayPal Inc. this week, saying the companies revised user policies "raise issues" under consumer protection laws. The updated user agreements would allow the e-commerce company and the payments division it's spinning off to contact users by phone for offers and promotions, to collect a…

Lawsuit Claims Nasty Gal Fired 4 Employees for Getting Pregnant
June 11, 2015 at 2:24 pm

A new lawsuit is threatening the accessibly feminist image on which Nasty Gal founder Sophia Amoruso has essentially built her career. Former Nasty Gal employee Aimee Concepcion has filed a suit against the company which alleges that she and three other female employees were illegally terminated after becoming pregnant. According to the complaint, originally reported…

Ex-Workers Accuse CVS of Racial Discrimination Against Shoppers
June 8, 2015 at 2:17 pm

Four former store detectives employed by CVS in New York filed a class-action lawsuit against the drugstore chain last week, accusing their bosses of ordering them to target black and Hispanic shoppers. The lawsuit, filed in Federal District Court in Manhattan, also alleged that the detectives were fired after they complained about racial discrimination, against…

Sears Lawsuit Alleges Store Sales to Benefit CEO
June 3, 2015 at 2:20 pm

A shareholder class-action lawsuit has been filed against Sears Holdings alleging the company's plan to sell its prime real estate holdings to a trust controlled by CEO Eddie Lampert would strip the struggling retailer of one of its last remaining valuable assets, leaving it a debt-laden, money-losing renter in its own stores. The proposed $2.5…

Supreme Court Rules Against Abercombie & Fitch in Headscarf Case
June 2, 2015 at 1:45 pm

The Supreme Court ruled in favor of a Muslim woman who has sued retailer Abercrombie & Fitch when the store failed to hire her because she wore a headscarf in observance of her religion. The court ruled 8-1 that the company failed to accommodate Samantha Elauf's religious needs when she was not hired on the…

J.C. Penney Pricing Lawsuit Could Be Big Trouble For Discounters
June 1, 2015 at 1:51 pm

A class action lawsuit against J.C. Penney could destroy the pricing strategies of many retailers. The same litigation could make it far more difficult for traditional retailers like J.C. Penney to compete with bulk discounters like Costco Wholesale and e-commerce specialists like Amazon.com.