Sports apparel firm Everlast Worldwide Inc on Tuesday said the New York Supreme Court had thrown out a lawsuit brought by a licensing consultant who was seeking damages of more than $49 million.

The New York-based firm said in a statement Joan Hansen and Co had sought to recover the value of commissions lost when former predecessor companies of Everlast merged in 2001.

Hansen alleged Everlast had breached their agreement as a result of the merger between Everlast World’s Boxing Headquarters Corp and Everlast Worldwide Inc - formerly known as Active Apparel Group Inc.

It also alleged that Everlast and CEO, George Horowitz had tortiously interfered with Hansen's consulting agreement.

But the Court dismissed the case saying that Hansen’s " ... complaint fails to identify an existing contractual obligation that [Everlast's subsidiary] has failed to perform". It also dismissed Hansen's claims alleging tortious interference as being without merit.

Mr Horowitz commented: "Obviously, we are gratified by the court's ruling. We remain committed to building the Everlast brand into a global powerhouse and can now do so without the distraction caused by needless litigation."

Hansen’s legal team later filed an appeal against the decision but will pursue only the breach-of-contract claims, dropping allegations of tortious interference against Mr Horowitz.