By  on August 2, 2005

NEW YORK — Saks Inc. is shedding more light on its chargeback policy, such as who was overcharged and by how much.

However, it still hasn't shown how the excess was calculated. Getting to the heart of the matter is something attorney Donald Kreindler of Phillips Nizer will have to grapple with over the next several months as he works on behalf of his client, International Design Concepts, to determine how much is owed by Saks Fifth Avenue in connection with the issue of chargebacks.

IDC sued Saks in May in a Manhattan federal court, alleging breach of contract and fraud in connection with chargeback and vendor allowance practices at the retailer. IDC is the assignee of assets of Apparel Group International, the licensee of Oscar de la Renta for the "Oscar by Oscar de la Renta" trademarks, which were used for a now-defunct women's sportswear bridge collection previously sold at SFA.

According to Kreindler, he was informed by Saks' attorney that the retailer had overcharged his client in "excess of $1.3 million."

Both Michael Gordon of Kirkpatrick & Lockhart Nicholson Graham, the lawyer for Saks, and a Saks spokeswoman declined comment on Monday.

The disclosure of the amount was necessitated by a court order following a conference between the parties that directed Saks reveal whether Kreindler's client was on the list of overcharged vendors and, if so, to what amount.

"So far, we have been given only the number that Saks admits. We have requested a calculation and all of the documentation to support it," Kreindler said.

IDC also said in its lawsuit that AGI is "no longer in operation," alleging it was "forced out of business by the actions of the Saks defendants." IDC filed an amended complaint in June that, among other things, charged that many of the deductions imposed by Saks Inc. and SFA "bore no reasonable relationship to any actual damage that occurred or could reasonably have been anticipated."

SFA is a division of Saks Inc.

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