Swatch sues for money lost in abandoned brand partnership.
Swatch Group is suing Tiffany & Co. as the termination of the groups’ watchmaking contract last year turns sour.
Swatch had signed a deal to produce watches under the Tiffany brand, and had been doing so since 2007, but in September last year it ended the partnership, calling it “necessary action following Tiffany & Co.’s systematic efforts to block and delay development of the business”.
Tiffany has dismissed these claims and has said that it “honoured its obligations under the agreement”.
The Swiss watch group is now suing the American jewellery brand for CHF3.8 billion (£2.65bn) – the money it claims it lost in developing the watch brand.
Tiffany, however, has filed a countersuit against Swatch for CHF542 million (£377.4m) for compensation. Swatch has said that it will “vigorously contest” this claim.