Fast fashion giants Shein and Temu shelve US court cases
Sign up now: Get ST's newsletters delivered to your inbox
Joint declarations were filed to courts in Chicago and Boston, requesting that two legal cases be dismissed “without prejudice”.
PHOTOS: REUTERS
Follow topic:
SHANGHAI – Fierce rivals Shein and PDD Holdings-owned Temu have applied to end their legal fights
Joint declarations were filed to courts in Chicago and Boston by lawyers representing the companies and their subsidiaries, requesting that two legal cases be dismissed “without prejudice” by their judges.
The filings did not contain details on why they had decided to drop their complaints or whether any settlement had been made. Neither company immediately responded to a request for comment on the filings on Friday.
Shein’s lawsuit against Temu, filed last December, alleged that Temu told social media influencers to make disparaging remarks about the fast fashion retailer, and tricked customers into downloading the Temu app using “imposter” social media accounts.
In July, Temu filed its own lawsuit, accusing Shein of violating US antitrust law in its dealings with clothing manufacturers.
Temu’s complaint alleged Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu”.
In previous statements, both companies denied any wrongdoing in the cases.
The two companies have shaken up the global retailing landscape with an ultra-fast fashion, low-price shopping model.
Shein, founded in China, and valued at US$66 billion (S$90.4 billion), sells fast fashion at rock bottom prices, including dresses priced at US$10 and bike shorts for around US$5.
The company produces clothing, mainly in China, that is sold online in the US, Europe and Asia.
Temu, whose parent company PDD Holdings also owns Chinese shopping platform Pinduoduo, similarly sells low-priced clothing but is equally well known for stocking cheap headphones and home appliances.
According to a note from HSBC analysts published this week, Temu is targeting US$16 billion in gross merchandising volume in 2023, versus consensus estimates of US$11 billion. REUTERS
