N.D. Ga.

Fashion Industry Sales Agreement Falls Apart, Leads to Trade Secrets Misappropriation Lawsuit

UnCommon Fashion, Inc. v. Sofie the Label, LLC, Sarah Yoon and Stephen Wong, Civil Action 1:22-cv-04273-AT (N.D. Ga., Oct. 26, 2022)

In April 2022, UnCommon, an Atlanta-based wholesale and marketing agency for women’s clothing, and Sofie entered into a vendor-sales agreement, in which UnCommon would be Sofie’s exclusive sales representative for much of the U.S. The agreement specified that UnCommon’s client lists were to be treated as trade secrets, and that Sofie would not solicit UnCommon’s clients for a specified period of time (17 months).

But after four months of working together, UnCommon says it learned that Sofie was directly soliciting and collecting clothing orders from their clients and not paying commissions to UnCommon. These actions were in violation of the agreement, according to UnCommon, and the Georgia-based company has filed suit against Sofie.

Since the agreement ended, UnCommon says Sofie has appeared at major wholesale trade markets in Atlanta and Dallas in competition with UnCommon and in violation of the agreement’s terms.

The lawsuit alleges misappropriation of trade secrets relating to UnCommon’s client lists and breach of contract. The plaintiffs are seeking a variety of damages, including statutory damages under the federal Defend Trade Secrets Act.

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