Legal

U.S. District Judge Richard Leon ruled today that the Federal Reserve misapplied Congress’ intent when it implemented required swipe fee reform regarding how much retailers are charged for debit card transactions. "From the very beginning, retailers and restaurants knew the Federal Reserve Board of Governors had grossly misapplied the swipe fee law, also known as the Durbin Amendment," said Mallory Duncan, senior vice president and general counsel for the National Retail Federation (NRF). "They failed to heed Congress’ call to set fee standards that were ‘reasonable’ and ‘proportional’ to the actual cost of a transaction."

A British judge has ruled in favor of the singer Rihanna, who sued retailer Topshop for selling a T-shirt bearing her image without permission. High Court Justice Colin Birss says buyers were likely deceived by believing she had authorized its sale. Birss says the sales represented a loss of Rihanna's reputation in the fashion realm, where the singer has been trying to carve out a name as a designer. She has a clothing line in her name at a rival store.

Just Fabulous, the company behind online fashion site JustFab.com, has sued white-hot e-commerce site Fab.com. Just Fabulous claims that Fab.com is infringing its Just Fab trademark. The company isn't asking for the Fab.com domain name, but wants Fab.com to be restricted from selling any sort of clothing or accessories "under or in connection with any trade name, trademark, service mark, Internet domain name or other designation of origin that's comprised in whole or in part of the JUST FAB or JustFab.com marks or names, or any terms, designs or styles confusingly similar thereto." 

A pair of former Apple retail employees have filed a class-action lawsuit against the company for lost wages. The lawsuit stems from an Apple retail policy that requires employees have their personal bags and purses inspected by managers before leaving the store for breaks, lunches and at the end of a shift.

A former executive at jeweler Tiffany & Co pleaded guilty Friday to stealing more than $2 million worth of jewelry from her one-time employer. Ingrid Lederhaas-Okun, 46, a former vice president of product development, pleaded guilty to a count of interstate transportation of stolen property less than a month after she was arrested in connection with the theft. Among the items stolen were bracelets, earrings and pendants made of diamonds, platinum and gold. Under a plea agreement, Lederhaas-Okun, a resident of Connecticut, has agreed to forfeit more than $2.11 million and pay $2.24 million in restitution. 

New York City-based law firm Bernstein Liebhard has filed a securities class-action complaint in the U.S. District Court for the Southern District of New York on behalf of all those who purchased shares of Kohl's Corp. between Feb. 26, 2009 and Sept. 13, 2011. The complaint alleges that Kohl's and some of its executives and directors violated the Securities Exchange Act of 1934 during that time period by materially understating the company's reported debt, overstating reported equity, materially understating leverage ratios, and not complying with other accounting and financial reporting requirements.

Sales tax rules may not be a topic of dinner conversation or family road trip banter, but they can be oddly amusing in their own way. From car seats to coats, when and where to charge sales tax can leave even the most savvy online retailer in the dark. Here's just a small sample of sales tax oddities:

Michael Kors, one of America's largest sportswear brands, is suing wholesale club Costco for false advertising. The issue stems from a Costco marketing email campaign which was sent to Costco customers last April. Advertising Mother's Day gift ideas, including "designer handbags starting at $99," it includes images of several Michael Kors bags, many of which have the MK logo on prominent display. The problem is that Costco doesn't sell MK bags. 

Advanced Auctions LLC filed a lawsuit against eBay for patent infringement on Thursday. The company claims eBay is violating its patent '000 entitled "Real Time Auction with End Game." The complaint

Three former Target employees are suing the nation's second-largest discount chain for discrimination and retaliation, citing alleged racial slurs from managers and a training document that included stereotypical portrayals of Hispanics. The lawsuit, filed recently in Northern California's Yolo County, says that workers who complained about the conditions at a distribution center in Woodland were fired. The complaint alleges that white managers regularly used racial epithets when speaking with Hispanic workers.