Catherine Malandrino filed suit recently against multiple defendants resulting from the sale of her namesake line. The lawsuit was filed against ASL Holdings, ASL Operations, Tahari ASL, Eli Tahari, Arthur S. Levine and Lester E. Schriber, as well as Bluestar Alliance and its founders and CM Brand Holdings.
In the lawsuit, Malandrino alleges seven causes of action ranging from breach of contract and tortious interference and the total amount of damages sought by the designer from all defendants is about $65 million.
image via catherinemalandrinousa.com
The lawsuit stems from the sale of the Catherine Malandrino line from ASL Holdings to the Tahari companies back in 2011. Malandrino claims that even though she found an investor who offered $12 million for line, she accepted Tahari and Levine’s offer of $6.59 million for her Black and Yellow labels, and all intellectual property rights associated with her brands.
Malandrino claims bad faith on the part of the defendants. She alleges that the focus should have been on her designer line, but the defendants created diffusion lines, Catherine Catherine Malandrino, or Pink label.
Rachel Roy won a preliminary injunction in her battle to stop The Jones Group from selling the Rachel Roy brand and associated trademarks to Bluestar Alliance for $14.6 million. New York State Supreme Court Justice Jeffrey Oing handed down the injunction on Friday which effectively prevents the continuance of any negotiations of the sale until the lawsuit has been resolved.
Roy sued the production and distribution company that has been acquired by equity firm Sycamore Partners in April of this year, claiming that the sale of the company violates the agreements between Roy and Jones when Jones acquired the brand in 2008.
To be granted a preliminary injunction, the plaintiff must show there is a likelihood of success and irreparable harm. Justice Oing stated, “Irreparable harm is that, you know, when it comes to trademarks, when it comes to designs, it’s very personal in nature.…This is something that she created, it’s her baby in that sense.…And I can’t help but think that [her trademark or] what she has worked hard at to develop would somehow go downscale or may go downscale, and it may go down to lower end, which is not what she envisioned, and that’s why this contract is written the way it’s written.”