MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has
cut its outlook on Collective Brands Inc. to negative from stable and affirmed
all other ratings on the specialty footwear retailer, including the 'B+'
corporate credit rating.
The outlook revision reflects the announcement that a jury verdict of $305
million has been reached in the Adidas lawsuit against Collective Brands for
trademark and trade dress infringement, unfair competition, deceptive trade
practices, and breach of contract, S&P said.
The ratings agency added it remains concerned that two other pending
trademark infringement suits by K-Swiss and Crocs could also result in
meaningful judgments against the company.
S&P also said it expects Collective Brands to file motions with the federal
court to set aside the verdict, and if that is not granted, the company intends
to take all necessary steps to overturn the verdict or reduce the total amount
of the judgment.
TFN.newsdesk@thomson.com
npr/man
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