Last week Swiss watchmaker Swatch Inc. filed a $4.2 billion lawsuit against Tiffany & Co. (NYSE: TIF) alleging that the US jeweler reneged on a joint venture that resulted in lost profit to the Swiss company. The deal, signed in 2007, was intended to last for 20 years, with the Swiss firm making watches to be sold under the Tiffany brand.
Tiffany announced today that it has filed a $590 million countersuit against Swatch for failing to honor the distribution of the Tiffany-branded watches and for failing to cooperate with Tiffany on the deal.
One analyst told Reuters that the dueling lawsuits won’t have much impact on Tiffany’s share price because the deal unravelled in its early stages.
Shares of Tiffany stock are up about 0.4% today at $69.04 in a 52-week range of $54.58-$84.49.