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Article: MADEMOISELLE SUES CLAIBORNE FOR $90M, UNITE FOR $45M MORE.(Mademoiselle Knitwear; Liz Claiborne)
- Article from:
- WWD
- Article date:
- May 7, 1998
- Author:
CopyrightCOPYRIGHT 1998 Conde Nast Publications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Another major battle-field has opened in the war pitting Mademoiselle Knitwear against Liz Claiborne Inc. and the union UNITE.
On Wednesday, Mademoiselle, a former Liz Claiborne contractor, filed in Manhattan federal court a $90 million dollar lawsuit against the apparel giant, charging it with perpetrating a "massive fraud scheme" to get out of its alleged obligation to provide Mademoiselle employees work.
The multicount suit charges Claiborne with violations of the Racketeer Influenced and Corrupt Organizations Act, bankruptcy fraud and breach of contract.
Roberta Karp, Claiborne's general counsel, responded in a statement, "Although we ...