WARRENDALE, Pa., July 15 /PRNewswire/ -- American Eagle Outfitters, Inc.
(Nasdaq: AEOS) (AE) has been granted summary judgment dismissing the lawsuit
filed by Abercrombie & Fitch (A&F), Inc. Judge John D. Holschuh of the United
States District Court, Southern District of Ohio, ruled in favor of AE and
dismissed A&F's lawsuit with prejudice.
Abercrombie & Fitch's lawsuit, filed in June 1998, claimed trade dress
infringement and unfair competition by AE. In response to the complaint, AE
filed a motion for summary judgment which argued that A&F, "has no rights, and
cannot acquire rights, in the type of generic marketing devices which are
described in the complaint."
According to Jay L. Schottenstein, Chairman of the Board, Schottenstein
Stores Corp., the majority shareholder of AE, "As we said from the beginning,
this lawsuit was meritless, frivolous and ridiculous. We are gratified that
Judge Holschuh has agreed with us and seen fit to thoroughly dismiss this
suit."
The Judge's decision concludes that the factors identified by A&F, "are
both generic and descriptive, and to forbid other clothing retailers from
adopting similar methods of advertising would be unduly anticompetitive." In
addition, the Judge referred to nine other retailers, "who used similar
features in their advertising."
According to George Kolber, COO & Vice Chairman, American Eagle
Outfitters, "It is regrettable that this lawsuit took place at all and that
A&F chose to compete with us in the courts rather than the most appropriate
arena -- the marketplace. We believe that the timing and massive publicity of
this lawsuit were a transparent attempt to disrupt the business, diminish
investor confidence and disparage the image of AE. We will continue to
produce the high quality, fashionable apparel which has enabled us to grow our
sales by 42.8% during the past twelve months."
According to Robert G. Sugarman, partner at Weil, Gotshal & Manges, who
represented AE, "The court's opinion contains a thoughtful analysis of the
applicable law. We are delighted that the Judge agreed with our position."
SOURCE American Eagle Outfitters, Inc.
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Related links:
http://www.ae-outfitters.com
Company News On-Call:
http://www.prnewswire.com/comp/104763.html or fax,
800-758-5804, ext. 104763
CONTACT:
Marcia Horowitz or Kathleen Lynn, Public
Relations, of Rubenstein Associates, 212-843-8000, for American
Eagle Outfitters
EDITORS' ADVISORY: A copy of the 15-page decision is available,
call contact.
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