Innovo, Beyond Blue Settle Legal Issues
Commerce, Calif.–based Innovo Group Inc. and Los Angeles–based Beyond Blue Inc. have reached a settlement relating to litigation and arbitration claims filed against each other in May.
As part of the settlement agreement, Beyond Blue must pay Innovo $200,000 relating to past invoices and other issues.
The dispute stems from a 2004 distribution agreement between Beyond Blue and Innovo’s Joe’s Jeans subsidiary for international sales. Both parties decided to end their partnership in February but clashed over several undisclosed terms of the dissolution.
Beyond Blue executives maintained they were entitled to various rights under the original distribution agreement but were rebuffed by Innovo. Beyond Blue on May 24 filed a lawsuit in Los Angeles Superior Court. Innovo countered by filing an arbitration claim the next day seeking payment from Beyond Blue for a number of past-due invoices.
The parties have since been negotiating and reached a settlement agreement effective July 3, which calls for Beyond Blue to pay the Joe’s Jeans division $200,000 by Aug. 1, according to Innovo’s 8K filing with the Securities and Exchange Commission.
In turn, Joe’s Jeans agreed to fulfill various purchase orders placed by Beyond Blue through Oct. 31, 2007, but Beyond Blue must cease marketing, distributing or selling Joe’s Jeans products during that time.
In a statement, Innovo Chief Executive Officer Marc Crossman said: “We are pleased to have reached an amicable settlement with Beyond Blue to resolve our differences without the further expense of litigation or arbitration. Further, this agreement allows us to put all outstanding issues behind us so we can move forward with our business without further distraction.”
Beyond Blue President Harry Haralambus added: “This settlement with Innovo and Joe’s Jeans hellip; brings to a satisfactory conclusion all discussions about the outstanding issues.”
—Robert McAllister
