A New York judge has ruled that Alibaba must respond to a case brought by a US toymaker who claims the Chinese e-commerce behemoth’s internet services were exploited to sell fake Squishmallows.
Alibaba sought the action to be dismissed, but Judge Jesse Furman of the Southern District Court of New York denied it. Kelly Toys Holdings is a company that manufactures well-known plush toys.
Jazwares is a toy firm owned by billionaire Warren Buffett’s Berkshire Hathaway, whose parent company, Alleghany Corp., controls Kelly Toys.
The largest online retailer in China, Alibaba, did not immediately respond. Alibaba predicated its move on several factors, including the fact that it was referred to in the case as Alibaba.com rather than its official corporate name.
Kelly Toys said that despite previous litigation ordering their cessation, merchants using Alibaba sites were still selling counterfeit Squishmallows. To prevent roughly 90 e-commerce businesses from selling fake replicas of the toys, the corporation had previously filed a lawsuit. In March, Alibaba was listed as a defendant.
