WASHINGTON — Outerwear firm Andrew Marc has reached a settlement with the Humane Society of the U.S. in a lawsuit the group filed last year over alleged false advertising and mislabeling of fur garments.

This story first appeared in the March 20, 2009 issue of WWD. Subscribe Today.

The Humane Society said Andrew & Suzanne Company Inc., which does business as Andrew Marc, agreed to phase out the use of raccoon dog fur in its Andrew Marc and Marc New York lines and to change its labeling process, according to a statement by the Humane Society. As part of the settlement, the company also endorsed proposed legislation that would close a loophole in federal law allowing garments to be sold without labels disclosing the use of fur.

G-III Apparel Group Ltd. acquired the Andrew Marc and Marc New York brands in 2008.

Jeanette Nostra, president of G-III, said there are inaccuracies in the Humane Society’s statement regarding the settlement and the company is working with the Humane Society to clarify it.

“G-III has always been in favor of transparency and clear labeling for consumers and we support that effort,” said Nostra.

The Humane Society filed the lawsuit in Superior Court here in November against Andrew Marc, Dillard’s Inc., Lord & Taylor, Macy’s Inc., Neiman Marcus Group and Saks Inc. The complaint alleged that the defendants sold garments labeled as “faux fur” or as raccoon, coyote or rabbit fur that were actually made of raccoon dog fur.

The lawsuit against the retailers is still pending.