Tiffany Counter Sues Swatch over Terminated Watch Deal

(IDEX Online News) – After Swatch ended its cooperation agreement with Tiffany & Co., suing it for CHF 3.8 billion ($6.3 billion), Tiffany & Co. made a counterclaim of CHF 541.9 million ($587 million), Swatch said in a release on Monday.

The sides agreed in 2007 that will design and manufacture Tiffany & Co. watches. Swatch claims it invested millions in the project.

In September 2011, Swiss watchmaker said that terminating the agreement “became necessary following Tiffany & Co’s systematic efforts to block and delay development of the business.” Tiffany responded that Swatch is unwilling to honor the terms of their agreement.

Swatch Group and its affiliate Tiffany Watch Co. Ltd requested full compensation for all losses in connection with Tiffany & Co.’s “past and continuing breaches of its obligation.” Swatch is seeking damages that include CHF 3.8 billion in claimed lost profits.

“This counter-claim has no factual or legal basis and will be vigorously contested by Swatch Group and Tiffany Watch Co. Ltd,” Swatch said in a statement.

Tiffany did not make a public response.