Gilt Inc., a company with a reputation for high-end eyewear, will not be sued for allegedly ripping off sunglasses makers for their designs, the company said in a filing Friday with the U.S. District Court for the Northern District of California.
In the complaint filed against the company, filed by two women who allege they were harmed by Gilt, the plaintiffs argue that the company’s products infringe on their patents, which the women say were stolen during the company in the 1980s.
In its filing, Gilt also said that it has a history of paying for defective products and other violations of intellectual property rights, including the sale of counterfeit and inferior products, but did not detail how many times it has paid for these products.
The lawsuit says the company has sold about $1.2 billion worth of products and is “unlikely to be able to pay its $1 billion in damages.”
In an emailed statement, Gilder told ABC News, “The defendants have a long history of taking advantage of legitimate business relationships with consumers and we are extremely proud of our history as a global leader in premium sunglasses.”
“We are pleased that the lawsuit has been dismissed, and look forward to addressing the allegations in the lawsuit,” Gilders lawyer, Joseph L. Miller, said in an email.
Miller said he has yet to be contacted by the plaintiffs.
Gilder’s lawsuit accuses the company of using a network of shell companies to disguise its ownership of the patents, as well as allegedly obtaining patents from the Patent and Trademark Office and other licensing agencies.
The women allege that they purchased their first pair of Gilt glasses in 1987, when they were only 15 years old.
The suit seeks unspecified damages for the women.
The complaint also alleges that Gilt has a pattern of failing to pay for defective sunglasses and claims it has “engaged in predatory practices to obtain the unauthorized rights to infringe upon its trademark and copyrights.”
Gilders lawsuit is just one of many against Gilt in recent years, with lawsuits filed in the United States and overseas.
The women have accused Gilt of stealing their designs and selling counterfeit goods and claiming the company was “swindling” consumers out of their hard-earned money.
In a statement, Miller said, “Gildernet’s lawsuit is a long-standing complaint filed by the women against Gildernit, which we believe to be meritless.”
“The allegations in Gildenet’s complaint are completely without merit,” Miller said.
“Gildermat is confident that we will prevail in our legal case, which has already been adjudicated in the Federal Circuit and will be before the courts on April 20, 2018.”
Gilt said it will respond in court “in due course.”