TIF Stock – Tiffany Ordered to Pay Swatch $449M

It must also pay Swatch's legal fees

   

Jewelers Tiffany Co 3 300x199 TIF Stock   Tiffany Ordered to Pay Swatch $449MOn Sunday, a panel at the Netherlands Arbitration Institute ruled that Tiffany & Co. (TIF) had violated a contract with Swatch Group.

The jewelry retailer has been ordered to pay $449 million in direct compensation and $9 million in legal fees to Swatch Group. The arbitration resulted from 20-year contract between the two companies to create a joint venture called Tiffany Watch Co., the Associated Press notes.

Tiffany 200x200 TIF Stock   Tiffany Ordered to Pay Swatch $449M
TIF – The Glitter is Dimmed at Tiffany’s

Though the contract was signed in 2007, Swatch accused Tiffany of trying to “block and delay” the agreement. It terminated the deal in 2011 and pursued arbitration over the disagreement.

Tiffany’s CEO issued a statement noting that the iconic jeweler was “shocked and extremely disappointed” but he panel’s decision. Tiffany indicated that it would consider other legal strategies.

TIF stock jumped in late November, after it released third-quarter earnings. TIF stock has gained almost 10% over the last month.

Despite the news TIF stock rose slightly in Monday morning trading. TIF stock has risen about 50% since the start of the year.


Article printed from InvestorPlace Media, http://investorplace.com/2013/12/tif-stock-tiffany-ordered-pay-swatch-449m/.

©2014 InvestorPlace Media, LLC

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