F&F Faces 370 Billion KRW Compensation Lawsuit in UK... "Will Actively Respond"

"Mobin Sali Guideline, Non-compliance with Quality Procedures"

F&F has been sued for 370 billion KRW by a partner company in the UK.

F&F CI

On the 18th, F&F announced that Movin SARL, which produces and sells clothing under a license agreement for Sergio Tacchini, filed a damages lawsuit worth 370 billion KRW in the UK against F&F, its subsidiaries Sergio Tacchini Operations (STO), Sergio Tacchini Europe (STE), and six other entities. Sergio Tacchini is a premium sports brand promoted by F&F.

F&F explained, "Movin SARL failed to comply with guidelines and quality procedures, resulting in the denial of license hologram issuance for some products in this fall/winter season." They added, "Due to difficulties in selling unapproved products and concerns that the license contract would be terminated if sold independently, Movin SARL filed the lawsuit."

Regarding the lawsuit amount of 370 billion KRW, F&F stated, "Movin SARL is claiming an amount equivalent to 40 years of last year's annual operating profit," and "It appears to be an exaggerated claim for damages caused by the non-approval of sales for one season."

The company explained that in the UK, litigation costs are not proportional to the lawsuit amount, making it easier for exaggerated claims to occur.

F&F stated that STO will actively refute the opposing party's claims in the lawsuit. Additionally, considering the damage to the credibility of F&F and the Sergio Tacchini brand caused by the lawsuit, they are reviewing the possibility of filing a counterclaim either directly or through STO.