Claims and counter-claims are flying thick and fast between Swatch and Tiffany & Co. , the erstwhile partners in a ruptured alliance aimed at globalizing the development and distribution of Tiffany branded watches, which ended last September.
According to Swatch’s statement on Monday, Tiffany is seeking 541.9 million Swiss francs (about $589 million) from Swatch as a counter-claim against Swatch’s December 2011 claim on Tiffany of 3.8 billion francs. Swatch earlier said that it was forced to end the alliance and seek damages due to breach of contract by Tiffany following its “systematic efforts to block and delay development of the business.”
Last year Tiffany had alleged that Swatch had failed to “to provide appropriate distribution for Tiffany’s brand watches.” Swatch remarked that it would “vigorously contest” Tiffany’s counter-claim as it had “no factual or legal basis”.
How the litigation will eventually pan out is presently unclear, but Zürcher Kantonalbank said in a note to clients that “we expect, that if at all, Swatch will receive some damages from Tiffany.”
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