On January 29, 2007, Casual Male Retail Group, Inc., and Casual Male RBT, LLC filed a lawsuit against Cutter & Buck Inc., Cutter & Buck Direct, LLC, Robert H. Yarbrough, RKC Mail LLC, a.k.a. MP4 Limited, d/b/a Mile Post Four, and Mile Post Investment, LLC in the United States District Court for the District of Massachusetts (Case No. 07-CA-10161). The lawsuit alleges, among other things, that Cutter & Buck improperly interfered with certain of Casual Male's relationships with its employees, and that certain Cutter & Buck employees improperly accessed, misappropriated and destroyed Casual Male's proprietary confidential information.

The lawsuit also alleges that certain Cutter & Buck employees breached contractual obligations not to compete with Casual Male. The lawsuit seeks a preliminary and/or permanent injunction enjoining Cutter & Buck from using its e-commerce Internet website and consumer catalog. In addition, the lawsuit seeks unspecified compensatory damages, punitive damages, reasonable costs and expenses, and such other relief as the Court deems proper. Cutter & Buck has not yet fully evaluated the merits of the various allegations, but intends to defend itself vigorously in the lawsuit.