Luxury goods giant LVMH is suing Wal-Mart over claims that the huge retailer is selling fake Fendi-branded products in some of its Sam's Club stores.
The French-based multi-national alleges that illegal copies of Fendi handbags, wallets and key chains have been sold at Sam's Club outlets in New York and California, at huge discounts to the genuine articles.
The company gave one example of a Fendi-branded handbag on sale at a Sam's Club store in Las Vegas for US$295.03, compared to the recommended retail price of $925.
Fendi, which filed the lawsuit in Manhattan, is seeking unspecified damages from Wal-Mart, plus the destruction of any illegal copies of its goods.
The lawsuit alleges that Sam's Club stores are selling goods that "imitate the designs of the Fendi products and that bear reproductions, counterfeits, copies or colorable imitations of the Fendi trademarks".
It goes on to say that Wal-Mart has never bought its products or asked if the items were genuine.
Wal-Mart has so far not commented on the action.
LVMH has already taken legal action against French supermarket group Carrefour earlier this year over claims that it was selling fake handbags in China.