NEW YORK–(BUSINESS WIRE)–Dec. 9, 2005–Adamson Apparel, Inc., a former vendor of Saks Incorporated, has brought a class action lawsuit against the famous retailer, alleging that Saks took unlawful offsets and discounts on its and other vendors’ goods, while failing to provide proper notification to vendors. The lawsuit also alleges that Saks breached its contracts with vendors in charging vendors more for returned goods than Saks had actually paid, according to attorneys representing Adamson Apparel, including Lieff, Cabraser, Heimann & Bernstein, LLP, Tousley Brain Stephens P.L.L.C., Cunningham Bounds Crowder Brown & Breedlove, LLC, Rodney T. Harmon, P.S., Ezra, Brutzkus, Grubner LLP, and Donaldson & Guin, LLC.
The offsets at issue are known as “chargebacks” and are based on alleged problems with goods that vendors shipped to Saks. Jonathan D. Selbin, a partner in the New York office of Lieff Cabraser Heimann & Bernstein, LLP, explained, “Large retailers such as Saks have used chargebacks to put profits ahead of fairness. Our case seeks to hold Saks accountable for their treatment of vendors in both receiving and returning goods.” Added Kim Stephens of Tousley Brain Stephens, PLLC, “Through chargebacks, retailers such as Saks can too easily take advantage of vendors who aren’t in a position to assert their rights.”
Saks is already under investigation by the Securities and Exchange Commission for its chargebacks policies, and has conducted its own internal inquiry of these practices. Saks also faces similar allegations in a separate suit filed by a former individual vendor in federal court in New York. A similar class action brought by vendors who sold to Federated Department Stores in connection with Federated’s chargeback practices is also pending in New York State, and has survived Federated’s attempts to have the case dismissed.
According to Richard T. Dorman, a partner with Cunningham Bounds Crowder Brown & Breedlove, LLC, the lawsuit has been filed in federal court in Birmingham, Alabama, where Saks is based, and alleges violations of Alabama law and breach of contract.
About Lieff Cabraser Heimann & Bernstein, LLP
Lieff Cabraser Heimann & Bernstein, LLP is a 60-plus attorney law firm with offices in San Francisco, New York, Washington, D.C., Beverly Hills and Nashville. Since 1972, Lieff Cabraser has successfully represented plaintiffs in a wide range of class action cases, including antitrust, securities, employment discrimination, wage and hour, defective products, and mass tort litigation. Since 1992, Lieff Cabraser has litigated 23 separate cases in which $100 million or more in jury verdicts were rendered or settlements were reached, including 11 cases valued at $1 billion or more each. To learn more about Lieff Cabraser, please visit www.lieffcabraser.com.
About Tousley Brain Stephens, PLLC
Tousley Brain Stephens PLLC was founded in 1978 with a focus on commercial litigation and complex business transactions. The firm’s national litigation practice includes securities, consumer, employment and product class action litigation. The firm has successfully litigated and resolved numerous cases in excess of $100 million. To learn more about Tousley Brain Stephens, please visit www.tousley.com.
About Cunningham Bounds Crowder Brown & Breedlove, PLLC
Cunningham, Bounds, Crowder, Brown & Breedlove, LLC was founded in 1958. The firm has expertise in national and state class action litigation involving defective products, consumer fraud, and complex litigation. The firm also continues to represent victims in traditional medical malpractice, automobile accidents, product liability, industrial accidents, maritime accidents, railroad accidents, aviation accidents, sports and recreation injuries and insurance fraud cases. The firm has recovered well in excess of one billion dollars on behalf of consumers and injured parties over the last decade. To learn more about our firm, please visit our website, www.cbcbb.com.
About Rodney T. Harmon, P.S.
Rod Harmon is a solo practice trial attorney with 25 years experience in both federal and state courts. He practices near Seattle, Washington, and represents clients throughout the United States. He has represented both vendors and retailers in court and has written and spoken on the subject of legal remedies for chargeback abuse.
About Ezra / Brutzkus / Gubner LLP
Ezra / Brutzkus / Gubner LLP is a boutique business law firm based in Encino, California. For the past 30 years, Ezra / Brutzkus / Gubner LLP has earned a reputation for being among the leading lawyers for apparel and textile manufacturers. To learn more about Ezra / Brutzkus / Gubner LLP please visit www.ebg-law.com.
About Donaldson & Guin, LLC
For more than two decades, Donaldson & Guin, LLC’s attorneys have served individuals, businesses and institutional investors inside the courtroom and out. A primary focus of our practice is “complex litigation,” that is, lawsuits involving complex legal issues and difficult procedural hurdles, especially in the areas of securities, antitrust, consumer fraud and other class action litigation. We have received an AV-rating from Martindale-Hubbell and are listed in the Bar Register of Preeminent Lawyers: The Definitive Guide to the Most Distinguished Law Firms in America under the heading “Civil Trial Practice.”
NOTE TO EDITORS: There is a pipe in the company name between Ezra, Brutzkus, and Gubner LLP. The pipe has been replaced with a forward slash because this symbol may not appear properly in some systems.
Lieff Cabraser Heimann & Bernstein, LLP
Rachel Geman, 212-355-9500
Cunningham Bounds Crowder Brown & Breedlove, LLC
Renee Smith, 251-471-6191
Tousley Brain Stephens, P.L.L.C.
Nancy Pacharzina, 206-682-5600
Rodney T. Harmon, P.S.
Rodney T. Harmon, Esq., 425-402-7800
Ezra, Brutzkus, Gubner LLP
Mark D. Brutzkus, Esq., 818-995-0215