China's fast fashion retailer Shein is facing a lawsuit that claims the clothing maker's copyright infringement is so aggressive, it amounts to racketeering.
The lawsuit, filed by three fashion designers in the U.S. District Court for the Central District of California, alleges “Shein produced, distributed, and sold exact copies of their creative work.”
The designers are seeking unspecified damages and want injunctive relief to prevent further racketeering activity. Shein hasn’t said whether it plans to go public this year, but there are reports that the company is raising money in anticipation of a U.S. listing before the end of the year. The report is part of an ongoing Congressional investigation into products offered to American consumers that could be made with forced labor in China. As part of the probe, the committee sent letters in early May to brands Nike and Adidas, as well as Shein and Temu asking for information about their compliance with the anti-forced labor law.
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