Alibaba faces lawsuit filed by US toymaker over sale of counterfeit Squishmallows
Date
12/28/2023 8:47:35 AM
(MENAFN) A judge in New York has ruled that Alibaba must proceed to face a lawsuit brought by a U.S. toymaker, alleging that the Chinese e-commerce giant's online platforms were utilized for the sale of counterfeit Squishmallows.
Judge Jesse Furman of the Southern District Court of New York rejected Alibaba's request to dismiss the case filed by Kelly Toys Holdings, the manufacturer of the popular plush toys.
Kelly Toys, owned by Jazwares, a toy company under the control of Berkshire Hathaway, owned by billionaire Warren Buffett's Alleghany Corp., initiated the legal action. Alibaba, China's largest e-commerce company, had sought dismissal, citing how it was named in the lawsuit as Alibabainstead of its formal corporate name.
In its complaint, Kelly Toys claimed that despite previous legal actions to halt sales of fake Squishmallows on Alibaba's platforms, the counterfeit sales persisted.
The company originally filed the case against approximately 90 e-commerce entities involved in selling counterfeit versions of the toys, with Alibaba being added as a defendant in March.
“Kelly Toys alleges that, notwithstanding that awareness, infringing listings — including some by the Merchant Defendants — have continued to proliferate on the Alibaba platforms,” Furman penned. He stated that the court found the claims to be plausible, leading to the denial of the motion to dismiss them.
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