Tiffany & Co. has been ordered to pay Swatch Group damages totalling CHF402 million (£274m), following a lawsuit relating to the companies’ terminated watch collaboration.
In a statement issued today by Swatch Group, it is outlined that the NAI Netherlands Arbitration Institute passed a judgement sentencing Tiffany & Co. to pay Swatch Group damages following a lawsuit dating back to 2011.
Swatch signed a deal to produce watches under the Tiffany brand in 2007, but in September 2011 the Swiss watchmaking giant ended the partnership, calling it “necessary action following Tiffany & Co.’s systematic efforts to block and delay development of the business”.
Tiffany dismissed these claims, stating it had “honoured its obligations under the agreement”. The Swiss watch group originally sued Tiffany brand for CHF3.8 billion (£2.65bn), money it claims it lost in developing the watch brand.
Tiffany, however, filed a countersuit against Swatch for CHF542 million (£377.4m) for compensation, a claim Swatch Group said it would “vigorously contest”.
According to the BBC, Tiffany said the decision would not impact its ability to realise its existing business plans in the short or long term and that it would review its legal options.