LAWSUITS NEWS & LEGAL INFORMATION
Vendor Markdowns
New York, NY: (Nov-21-07) Two lawsuits were brought against luxury retailer Saks Inc., alleging abusive markdown allowances against vendors. Sources claim that one of the suits was brought by International Design Concepts (IDC), a former Oscar de la Renta licensee. Saks officials stated that the company has reached settlements in the two cases, causing it to record an after-tax expense of about $2.7 million. The settled suits were brought separately by former Saks vendors IDC and Kleinert's Inc. Though company officials didn't disclose details of the deal, it is said to have been a substantial payout with IDC, as the company had turned down an earlier $1.8 million settlement offer from Saks.
In September 2007, Saks settled an investigation by the Securities and Exchange Commission into alleged financial-reporting violations related to the matter, by agreeing to a permanent injunction against future violations. Saks had admitted in 2005 that it took $21 million in improper deductions against vendors and fired three executives and several managers involved with collecting the extra money. [WALL STREET JOURNAL: VENDOR MARKDOWNS]
Published on Nov-23-07
In September 2007, Saks settled an investigation by the Securities and Exchange Commission into alleged financial-reporting violations related to the matter, by agreeing to a permanent injunction against future violations. Saks had admitted in 2005 that it took $21 million in improper deductions against vendors and fired three executives and several managers involved with collecting the extra money. [
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