F&F has settled a legal dispute with an overseas partner that had filed a damages lawsuit over noncompliance with design guidelines worth 370 billion won.
F&F said on the 19th in a filing that "overseas partner MOVIN SARL filed a damages lawsuit against eight parties, including the company and its subsidiaries Sergio Tacchini Operations (STO) and Sergio Tacchini Europe (STE), and a total of eight defendants, including the company, have reached an agreement with the plaintiff to withdraw the suit."
MOVIN SARL is an overseas partner that signed a Sergio Tacchini license agreement and has produced and sold apparel. Sergio Tacchini is a global premium sports brand operated by F&F.
Previously, MOVIN SARL filed a damages lawsuit in the United Kingdom last year against a total of eight parties, including F&F, Sergio Tacchini Operations, and Sergio Tacchini Europe, seeking about 370 billion won.
According to F&F, MOVIN SARL produced products without complying with guidelines and quality control procedures during the design approval process, despite recommendations from headquarters. As a result, F&F halted the issuance of license holograms for some products in the fall-winter season last year. Afterward, with sales of unapproved products restricted, MOVIN SARL is said to have filed suit out of concern that self-distribution could lead to termination of the license agreement.
Regarding the settlement, F&F explained, "In the course of the litigation, the design philosophy and quality standards of the Sergio Tacchini brand, as well as the contractual rights and responsibilities we hold, were sufficiently substantiated, and as a result we reached an agreement to withdraw the suit."
It added, "We determined it was more reasonable to focus management resources on global business expansion rather than prolonging the litigation," and "starting from this point, we will continue to strengthen global license management and partnership operations to enhance Sergio Tacchini's brand value going forward."