Puma is being sued by Parigi Group Ltd., the former licensee of Puma's kids products, for breach of contract and defamation. Parigi is also suing United Legwear & Apparel
Co. On Jan. 5, Puma and United Legwear & Apparel Co. annoucned they were entering into a joint venture in North America for the production, sales, marketing, and distribution of Puma children's apparel from infant through boys' size 20 and girls' size 16.
The lawsuit claims that “Puma intentionally and fraudulently made repeated misrepresentations to Parigi that Puma intended to renew the parties' more than 10-year-long license agreement.” It also alleges that Puma disclosed trade secrets and proprietary business information to United Legwear & Apparel Co. and tried to discredit Parigi among retailers such as Bloomingdale's and Macy's.
Parigi is suing Puma for more than $75 million, plus damages, since it claims it helped Puma grow its childrenswear business into a $75 million division.
Puma disputed the claims. “Yesterday, we were made aware of the allegations against Puma in the U.S. District Court of New York,” said a company spokeswoman in a statement sent to Bloomberg. “We deny all allegations, and we look forward to presenting our case.”
