In a case bound to send a chill through the retail industry, Fendi and Sam's Club, a division of Wal-Mart, have settled a dispute that claimed the U.S. warehouse club sold counterfeit handbags and
leather goods in five states.
Under the sealed agreement, Sam's Club agreed to pay the Italian luxury firm a confidential amount to settle the dispute and dismiss the action, which had
charged the retailer with selling "significant quantities" of counterfeit items valued "in the millions of dollars." Sam's Club is also offering its customers a full refund for any counterfeit Fendi
bags, wallets and scarves they purchased.
Over the past three years, Fendi has tripled its budget for anti-counterfeiting measures. "It's pure and simple theft," says Michael Burke,
chairman and CEO of Fendi. "Going forward, intellectual property is more and more the reason you're buying something."
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