Retailer Wal-Mart has agreed to pay to Fendi a confidential sum to end a dispute over the sale of counterfeit Fendi handbags in its Sam's Club stores.

Fendi, owned by luxury goods group LVMH Moët Hennessy Louis Vuitton (LVMH), and Sam's Club have jointly resolved the dispute - which constitutes one part of the litigation Fendi has pending against various retailers.

Sam's Club will also offer customers the opportunity to return bags, wallets, and scarves with a Fendi label they purchased at its stores for full refunds.

Michael Burke, chairman and CEO of Fendi, said: "We are pleased to put this matter behind us in a way that recognises and allows us to protect our distinctive trademarks. We believe this resolution to be in the best interests both of our customers and the Sam's Club members.

"We applaud the determination of Wal-Mart and Sam's Club to protect the intellectual property rights of others and to ensure that the products it sells are genuine. We will continue our global efforts to protect our brand from trademark infringement of all kinds."

LVMH first announced that it would sue Wal-Mart for selling fake Fendi-branded products in its stores this time last year, saying that illegal copies of Fendi handbags, wallets and key chains were sold at discount prices.

Doug McMillon, president and CEO of Sam's Club, said: "We are pleased that we have resolved our dispute with Fendi.

"We have programmes in place to protect the intellectual property rights of others. However, during this litigation, Fendi provided us information that the 12 types of bags and wallets specifically listed in its complaint were not genuine. We accept this information.

"We are and remain committed to ensuring that all of the products we sell are genuine, and, as a consequence, Sam's Club is offering our members who purchased Fendi-labelled bags, wallets, or scarves the opportunity to return them for full refunds."

The companies added yesterday (6 June) that both Fendi and Sam's Club are "committed to the enforcement of intellectual property rights to maintain the value of genuine products".