A federal jury thinks Costco Wholesale Corp. (ticker: COST) owes millions of dollars to Tiffany & Co. (TIF) for the sale of counterfeit Tiffany diamond engagement rings — $5.5 million to be exact, reports Reuters.
The recent trial’s purpose was to figure out exactly how much Costco should pay Tiffany following a 2015 ruling against the retailer. U.S. District Judge Laura Taylor Swain said Costco violated the Tiffany trademark through Tiffany-labeled rings the warehouse retailer sold.
Costco said at the trial’s start the most it should pay Tiffany was $781,000. The $5.5 million amount, according to the jury, was indicative of Costco’s ring profits that would best satisfy its debt to Tiffany. Costco says it only sold 2,500 of these rings, though Tiffany’s lawyers put the number at 11,000, reports Investopedia.
The jury also said that Tiffany was entitled to punitive damages but no decision has been made.
Costco’s stock is down 5.57 percent on the year. The company posted $779 million in earnings in its fourth quarter and $2.35 billion at the close of its fiscal year in August, reports Investopedia.
Costco has struggled in the market following a less-than-smooth Visa-branded (V) card transition, not to mention competition from the likes of retail giant Amazon.com (AMZN).
A Tiffany spokesman did not offer comment to Reuters Friday. Costco said in a statement that since the jury was still meeting, it would also not say anything.
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Costco Wholesale Corp. Owes Tiffany & Co. Millions of Dollars, Says Jury (COST) (TIF) originally appeared on usnews.com
