On 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.
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.