Goody’s Family Clothing, Inc. announced that a decision had been reached by the U.S. District Court for the Northern District of Georgia in the action brought against Goody’s by Tommy Hilfiger. In that decision, the Court awarded damages to Tommy Hilfiger in the amount of approximately $11 million plus attorney’s fees and costs. The award consists of $2.1 million in damages for the sale of counterfeit t-shirts and nearly $9 million for trademark infringement involving the labeling of three lines of private label jeans formerly used by Goody’s.

“While we are disappointed and surprised by the Court’s decision, based on a preliminary review of the decision, we believe we have strong grounds for appeal and are currently reviewing our options,” stated Robert M. Goodfriend, Chairman and Chief Executive Officer.

“In the matter of the t-shirts, Goody’s did not knowingly sell counterfeit merchandise, and we strongly disagree with the Court’s finding of willful blindness,” Goodfriend said. “We also vigorously dispute the Court’s finding that we intended to copy and derive benefit from the Tommy Hilfiger trademark. This finding is particularly surprising in view of the Court’s explicit acknowledgement that it is not unusual for companies to draw inspiration from other trademarks and a number of its other findings, including that there was no actual confusion between the Hilfiger brand and the Goody’s private label jeans.”

Goody’s has insurance coverage in excess of the amount of the damage award, although the insurers have reserved their rights regarding their obligation to indemnify Goody’s, and there can be no assurances that the insurance will be available.