News Flash

Iconix wins jury verdict against Hubert Guez, Sweet, Azteca & Apparel Distribution

12 Apr '07

2 min read

Iconix Brand Group Inc announced that the jury has returned a favorable verdict in the litigation entitled Unzipped Apparel LLC et al. v. Sweet Sportswear LLC et al. commenced by the Company and certain of its subsidiaries in August 2004 in the Superior Court of California, Los Angeles County. A description of the litigation is contained in the Company's 2006 Form 10-K and certain of its other SEC reports.

The jury awarded the Company an aggregate of approximately $45 million in compensatory damages. The jury found for the Company on every one of the claims it pursued, and against the defendants on every counterclaim asserted. Additionally, the jury found that all of the defendants acted with "malice, fraud or oppression" with regard to Company's tort claims, and intentionally infringed the Company's federally registered BONGO trademarks.

Based upon the multiple findings of malice and willfulness, a punitive damages phase of the trial will begin shortly. There will also be a subsequent proceeding in which the Court will determine whether treble damages should be awarded for the trademark infringement claims. In addition, many of these claims are subject to contractual and statutory fee-shifting provisions, entitling the Company to recover its attorneys' fees and costs.

The Company intends to vigorously pursue collection of the judgments against the defendants, when entered by the Court. The defendants have the right to appeal the judgments, but should be required to post an appropriate bond to secure the judgment and stay execution proceedings.

Neil Cole, Chairman and CEO commented, "We are extremely pleased with the verdict and feel that justice has been served."

Iconix Brand Group Inc

More Iconix Brand Group Inc News... More Fashion News - United States Of America...