Why a Judge Dismissed Claims in this Alibaba Counterfeit Lawsuit

A U.S. judge on Thursday dismissed part of a lawsuit filed last year by Gucci, Yves Saint Laurent and other luxury brands accusing Chinese e-commerce company Alibaba Group of promoting the sale of counterfeit goods.

U.S. District Judge Kevin Castel in Manhattan dismissed racketeering claims asserted by brands owned by Paris-based Kering SA, saying their complaint failed to allege facts that could sustain those claims.

The lawsuit claimed Alibaba and 14 companies selling counterfeit goods on its online marketplaces joined to form an enterprise that sought to profit from items, such as a knockoff Gucci handbag that sold for $18.99 rather than $1,250.