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Shein: A Fast Fashion Giant Facing A Rico Lawsuit

Shein is one of the most popular online fast fashion retailers in the world, offering trendy and affordable clothing for women, men and kids. However, the company has recently been hit with a lawsuit that accuses it of racketeering and copyright infringement. What is the lawsuit about? Three graphic designers, Krista Perry, Larissa Martinez and Jay Baron, have filed a complaint in a California federal court on July 13, 2023, alleging that Shein has stolen and sold exact copies of their original designs. They claim that Shein uses secretive algorithms to determine fashion trends and produce clothing that mimics the work of independent artists. They also allege that Shein uses shell companies and third-party vendors to avoid liability and conceal its identity. The lawsuit claims that Shein’s actions amount to racketeering, which is a term used to describe organized crime or illegal

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business activities. The lawsuit invokes the Racketeer Influenced and Corrupt Organizations Act (RICO), a law that was originally created to prosecute organized crime groups such as the Mafia.The lawsuit seeks damages and injunctive relief to stop Shein from continuing its alleged infringement. The lawsuit is still in its early stages, so it is hard to predict what will happen next. However, some possible outcomes are: * The lawsuit is dismissed or settled out of court, with or without any changes in Shein’s practices. * The lawsuit goes to trial, where a jury or a judge will decide whether Shein is guilty of racketeering and infringement, and what damages or remedies are appropriate. * The lawsuit sparks public awareness and debate about the issues of fast fashion, intellectual property rights and consumer protection, leading to more lawsuits, regulations or reforms in the industry.

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