HANGOVER PART THREE: It’s the lawsuit that never ends.

Louis Vuitton filed an appeal Tuesday challenging last month’s dismissal of its case against Warner Bros. Entertainment Inc. for the use of counterfeit luggage in “The Hangover Part II.”

This story first appeared in the July 18, 2012 issue of WWD. Subscribe Today.

In its complaint, which was filed in December in New York federal court, Louis Vuitton, a division of LVMH Moët Hennessy Louis Vuitton, said that the movie studio knowingly used fake bags made by Diophy, a group of U.S. and Chinese companies peddling knockoffs. The brand said the bags could cause consumer confusion, a key claim needed to prove trademark infringement.

The fakes made a brief cameo in “The Hangover Part II,” in which a character played by Zach Galifianakis carries luggage emblazoned with “LVM,” and says to his costar, “Careful, that is a Louis Vuitton,” while butchering the pronunciation of the French brand’s name.

In his opinion dated June 18, presiding Judge Andrew Carter denied Louis Vuitton’s allegations, calling them “not plausible” or “particularly compelling.”

Louis Vuitton had originally asked for profits from the film, which grossed roughly $580 million, and triple damages, as well as the destruction of all copies of “The Hangover Part II,” along with promotional materials that include the airport scene with the fake bag.

The judge didn’t award any damages. A date for the appeals hearing has not yet been determined.

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