Alibaba To Face U.S. Firm’s Suit Over Sales Of Fake Squishmallows

A judge in New York has ruled that Alibaba must face a lawsuit by a US toymaker alleging that the Chinese e-commerce giant’s online platforms were used to sell counterfeit Squishmallows, as reported by the Associated Press (AP).

In its complaint, Kelly Toys said sales of faked Squishmallows by merchants using Alibaba sites continued despite earlier lawsuits demanding they be stopped. I Photo: Squishmallows Facebook

Judge Jesse Furman of the Southern District Court of New York refused Alibaba’s request to dismiss the case filed by Kelly Toys Holdings, which makes the popular plush toys. Kelly Toys is owned by Jazwares, a toy company whose parent company Alleghany Corp. is controlled by billionaire Warren Buffett’s Berkshire Hathaway.

In its complaint, Kelly Toys said sales of faked Squishmallows by merchants using Alibaba sites continued despite earlier lawsuits demanding they be stopped.

The company had earlier filed the case to stop about 90 e-commerce companies from selling counterfeit versions of the toys.

Alibaba was named as a defendant in March. “Kelly Toys alleges that, notwithstanding that awareness, infringing listings — including some by the Merchant Defendants — have continued to proliferate on the Alibaba platforms,” Furman wrote.

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