Herb Ellis Discusses Shein RICO Lawsuit On Fox 5 NY News

Posted on: July 26, 2023

Shein, a trendy fashion retailer, is facing a RICO lawsuit alleging copyright infringement so egregious that it amounts to racketeering. The popular clothing company is accused of producing and distributing cheap copies of designs stolen from up and coming designers. The lawsuit claims that Shein produced and distributed 6,000 items a day of the exact creative work of other fashion designers.

Herbert I. Ellis, partner and founder of Ellis Law, was featured on Fox 5 NY news to discuss the topic. Mr. Ellis explained that the Racketeer Influenced and Corrupt Organizations Act (RICO) provides a way to remedy the federal crime of acquiring a business through illegal activity, operating a business with illegally-derived income, or using a business to commit fraud or other illegal acts. Mr. Ellis compared the racketeering allegations against Shein to Bernie Madoff’s Ponzi scheme and the Enron accounting fraud case.

A representative from Shein stated that the company takes all accusations of infringement seriously, and denies all claims that are without merit. Shein is the largest online clothing retailer in the world and worth approximately 100 billion dollars.

For more information or to schedule a free consultation, call Ellis Law at 732-308-0200 or contact us online. Located in Freehold, New Jersey, we serve clients throughout the area.