Swiss watchmaker Swatch Group has won a lawsuit against US jewelry brand, Tiffany & Co. over a failed joint venture to design and market luxury watches. Tiffany was required to pay Swatch $449 million under the ruling by the Netherlands Arbitration Institute, Swatch said in a statement. The case stems from a 2007-2011 cooperation deal that Swatch said Tiffany had systematically obstructed. Swatch Group sought $4.25 billion from the jewelry giant, while Tiffany had countersued for $606 million from Swatch. According to Swatch's statement, the Netherlands Arbitration Institute rejected Tiffany's countersuit.
Tiffany chief executive Michael Kowalski said the company was "shocked and extremely disappointed with the decision" and was reviewing its options with its lawyers. He said the company had "sufficient financial resources" to pay the award, and that its books would reflect the payment as an after-tax charge of $295 million to $305 million in the fourth quarter.