NEW YORK — Liz Claiborne Inc. reached settlements last week with all but one of the defendants named in its April lawsuit over the alleged manufacture, distribution and sale of fake Monet-branded jewelry over a period of almost two years.

Settling the suit were Division Sales Inc., Consumer Product Recovery, Form Systems and several individuals who were management or shareholders of those firms.

Dallas-based discount retailer Tuesday Morning Corp. was the only party that did not settle, Claiborne said in a statement Tuesday. The suit against Tuesday Morning is pending. Laurey Peat, of Laurey Peat & Associates, a public relations firm speaking for Tuesday Morning, said of the case, “We’re continuing to pursue it through the legal process.” When the suit was filed, Tuesday Morning denied the charges.

Harley Lewin, outside council to Claiborne, said the suit against Tuesday Morning was now in the discovery phase.

“We’re subpoenaing certain employees at all of these entities that were involved because we think that Tuesday Morning has not only got culpability, but may also have intentional culpability,” Lewin said.

In addition to Tuesday Morning, the suit, brought in Dallas Federal Court, included Chicago-based reseller Division Sales and parties involved in related activities, such as printing labels for the merchandise. Terms of the settlement include the recognition of Claiborne’s rights relating to Monet, consent to a permanent injunction and an unspecified cash payment to the firm.

“The defendants who are settling, while denying liability, agreed to much of what we were asking for in court and have moved rapidly to resolve this matter,” said Claiborne senior vice president and general counsel Roberta Karp.

In May, Claiborne said the suit was prompted by a tip that firms named in the suit were working with printers to make false labels and were selling counterfeit Monet jewelry.

The Cook County Sheriff’s Police Department Special Operations Unit in April seized more than 100,000 pieces of jewelry, some bearing the Monet name, at a CPR facility in Des Plains, Ill. Additional search warrants were then executed on Pamco Printed Tape & Label Co. and Form Systems Inc., which recovered sales files, product samples and other documents.

This story first appeared in the July 21, 2004 issue of WWD. Subscribe Today.