After nearly a year of legal proceedings, Nordstrom and Patagonia have reached a settlement in a counterfeiting lawsuit.
Patagonia filed the lawsuit on May 30, 2023, accusing Nordstrom of selling “thousands of counterfeit Patagonia sweatshirts and t-shirts” through Nordstrom Rack, its sister brand. The complaint, lodged in the U.S. District Court for the Central District of California, highlighted Nordstrom’s history as an authorized Patagonia dealer and the trust customers placed in the retailer to offer genuine Patagonia products.
The lawsuit was dismissed by Patagonia after both parties agreed to a settlement, as indicated in the court filing for dismissal. Patagonia had described the items sold by Nordstrom as “obvious counterfeits,” alleging that they misled customers about product quality and manufacturing conditions. These counterfeits, Patagonia asserted, tarnished its reputation, which it had built over decades with investments in quality and fair labor practices.
Before resorting to legal action, Patagonia had alerted Nordstrom to the issue and requested a voluntary recall or reimbursement for affected customers. However, with Nordstrom failing to take action, Patagonia proceeded with the lawsuit.
Despite the settlement between Nordstrom and Patagonia, Nordstrom, Inc. has maintained a third-party complaint against Razaz Group LLC, a New Jersey-based clothing vendor. According to the dismissal court document, Nordstrom, Inc. intends to pursue a default judgment against Razaz Group, alleging its involvement in supplying the counterfeit products at the center of the lawsuit.
The third-party complaint contends that Razaz Group accepted a series of purchase orders from Nordstrom in September 2022, under the terms of which it agreed to supply various Patagonia-branded clothing items. Nordstrom asserts that it had no reason to doubt the authenticity of these products until notified by Patagonia.