In an effort to create as many as 6,000 new items per day, Shein uses a “byzantine shell game of a corporate structure” to rip off designers, a coordinated illegal operation that can be combated through the use of RICO statutes, according to the lawsuit.
The lawsuit, filed by three fashion designers in the U.S. District Court for the Central District of California, alleges “Shein produced, distributed, and sold exact copies of their creative work.”
The designers are seeking unspecified damages and want injunctive relief to prevent further racketeering activity. Shein hasn’t said whether it plans to go public this year, but there are reports that the company is raising money in anticipation of a U.S. listing before the end of the year.Shein spokesperson Peter Pernot-Day has said the company takes transparency across its entire supply chain seriously.last month unloaded a blistering critique of Shein and another Chinese fashion retailer, Temu.
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