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government-trade

Chloé Awarded $7.2M in Infringement Suit

Default judgment after Los Angeles supplier failed to respond to an infringement lawsuit filed by Chloé.

A federal court on Friday entered a $7.2 million default judgment against a Los Angeles supplier after he failed to respond to an infringement lawsuit filed by Chloé.

According to court documents, Mohammed Alexander Zarafshan, who did business as Alexander Zar, was aware of the 2006 suit and initially gave a deposition in the case, but never formally answered the complaint. A judge can enter a default judgment if a defendant fails to respond within a given time.

A representative at the Alexander Zar showroom in Los Angeles said Friday the company’s namesake no longer had anything to do with its operation and could not provide his contact information.

In its initial suit, filed in U.S. District Court in Manhattan in April 2006, Chloé alleged that Internet operator Queen Bee of Beverly Hills had sold counterfeit goods through its Web sites. It later amended its complaint to include Zar as a defendant after documents revealed that he was the online business’ supplier.

In July, Magistrate Judge Michael Dolinger submitted a report that concluded Chloé was entitled to $7.2 million award, or triple Zar’s profits. District Judge Richard Holwell adopted the report in September and the court clerk entered it into the record Friday.

According to the report, the case against Queen Bee was stayed after the firm declared bankruptcy and Chloé entered into a $15,000 settlement with another defendant.