Vera Wang Faces Suit for Devaluing Her Brand

Vera Wang was slapped with a $2.5 million fraud and breach of contract lawsuit in 2012 that is now heating up New York Supreme Court. Hawaiian retailer, Gemmon LLC, alleged in its complaint that Wang devalued her brand by entering into an agreement with Kohl’s department store to exclusively sell “Simply Vera,” a low-end diffusion line and then entering into deals with Costco and David’s Bridal, "making the designer’s high-profile goods more accessible to consumers on smaller budgets." Gemmon claims this made it impossible for them to operate their Wang-exclusive boutique. According to Gemmon's complaint, it had agreed to sell Wang-branded exclusively, including Wang’s ready to wear collection. However, Wang says this isn't exactly how things went down.

In a recently filed motion for dismissal, Wang claims that Gemmon owner, Donna Bebber, had no experience running a boutique and as a result, went out of business in June 2008, half way into the parties' five-year agreement. According to Wang, Gemmon’s claims are nothing more than “an attempt to shift blame to a well-known defendant."