Filene's settles Fendi suit for $2.5 million

New York City Fendi said Tuesday that the luxury brand has reached a $2.5 million settlement with Filene's Basement over allegations the retailer sold counterfeit Fendi products.

Fendi North America and other Fendi units first filed suit against Filene's Basement in 2006. In addition to the $2.5 million payment from FB Liquidating Estate, which Fendi has already received, Filene's has also agreed not to sell any Fendi branded products without Fendi’s written authorization.

The settlement also calls for Filene's to turn over to Fendi any Fendi-branded products in its possession.

The FB Liquidating Estate has also paid $50,000 for advertisements announcing the settlement to run in various publications.

Fendi CEO Michael Burke said the case was complicated by Filene's bankruptcy filing but the company wanted to see the case through. Filene's Basement emerged from bankruptcy protection in 2009 after being purchased by off-price retailer Syms Corp.