Russell Simmons today announced that his companies have filed a lawsuit in the Supreme Court of the State of New York against The Millwork Trading Co. LTD (Li & Fung, USA) for fraud and breach of contract in connection to the "American Classics By Russell Simmons" and "Russell Simmons Argyleculture" trademarks. The suit seeks compensatory and punitive damages in excess of $55 million.
In connection with the filing, Simmons released the following statement:
"Almost
20 years ago I pioneered a space that enabled an entire generation of
minority designers and entrepreneurs to redefine the landscape of
fashion. Similarly today, there is an enormous void in the market to
fulfill the aspirations of the Urban Graduate, who has grown out of this
urban fashion trend but isn't represented by the mainstream brands. I
set up Simmons Design Group, and its flagship brand, Argyleculture, to
pioneer this vast open space.
In 2007, Li & Fung USA, a division of the Hong Kong-based
apparel-sourcing powerhouse, which purported to be the market leader in
the development of proprietary brands, approached me about obtaining
the exclusive license for American Classics, my smart budget mass-market
apparel brand. At that time we made it clear that Simmons Design
Group's main focus was Argyleculture, and that the two brands needed to
work synergistically and belonged together. They expressed a false
enthusiasm for my flagship brand in order to induce me into licensing
them my mass-market brand.
Li & Fung USA and I came to terms
on both agreements provided that Li & Fung USA use its best efforts
to manufacture, sell and promote American Classics and Argyleculture
licensed products in the US.
After two years of repeated
misrepresentations, failed execution and lack of development and
support, it is blatantly clear that Li & Fung USA never intended
perform its contractual obligations under both Argyleculture and
American Classics trademarks. Therefore I have taken this action to
protect my partnerships with retailers and recover millions in damages
on behalf of my brands and to protect my name and reputation in the
industry.
Over the last 30 years and with the help of numerous
partners, I've built successful groundbreaking businesses in music,
apparel, television, film, jewelry, games and multiple charities and
causes. Not once have I ever had to file a lawsuit. For the first time
in my career I found myself with a partner in Li & Fung, which had
executives who willfully and repeatedly put the integrity of my brands
at risk.
With Simmons Design Group and it's multiple licensees and
powerful retail partners, I feel a strong commitment to pioneer a space
that addresses a huge newly emerged demographic, the multi-racial,
culturally sophisticated new American. I am taking direct control of
the business and am in active discussions with future prospective
partners."
About Russell Simmons
Forbes Magazine recently named Russell Simmons one of "Hollywood's Most Influential Celebrities." USA Today named Russell Simmons
one of the "Top 25 Most Influential People of the Past 25 Years,"
calling him a "hip-hop pioneer" for his groundbreaking vision that has
influenced music, fashion, finance, the jewelry industry, television and
film, as well as the face of modern philanthropy. From creating his
seminal Def Jam Recordings in 1984, to the 2007 publishing of his New York Times
best-seller Do You! 12 Laws to Access the Power in You to Achieve
Happiness and Success, Russell is recognized globally for his influence
and entrepreneurial approach to both business and philanthropy. Giving
back is of primary importance to him in all aspects of life and as
Chairman and CEO of Rush Communications, he has consistently leveraged
his influence in the recording industry, fashion, television, financial
services, and jewelry sectors to give back. A devoted yogi, Russell
leads the non-profit division of his empire, Rush Community Affairs, and
its ongoing commitment to empowering at-risk youth through education,
the arts, and social engagement. Russell also serves as UN Goodwill
Ambassador For The Permanent Memorial To Honor The Victims Of Slavery
and The Trans-Atlantic Slave Trade. For more information please visit www.rushcommunications.com