WASHINGTON — The Cashmere & Camel Hair Manufacturers Institute has withdrawn its lawsuit against Laura Ashley Holdings in the U.K. as part of a settlement agreement over mislabeled cashmere.

In its lawsuit, CCMI alleged Laura Ashley was falsely labeling cashmere sweaters as “pure,” when independent tests revealed they contained sheep’s wool. The institute alleged a breach of U.K. labeling regulations and sought criminal penalties in the claim.

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