Tousley Brain Stephens Successfully Obtains Ruling Ordering SAKS Department Stores to Produce Audit Report Investigating Allegedly Illegal Charge Backs

On October 5, 2006, the United States District Court for the Northern District of Alabama ordered SAKS to produce an internal investigation report prepared by its Audit Committee in connection with the governmental investigation into the illegality of SAKS’ “charge back fees.” Charge back fees are assessed by merchants against vendors who allegedly deliver nonconforming goods. On behalf of one of the merchants, Adamson Apparel, Inc., and other merchants similarly situated, Tousley Brain Stephens PLLC brought a putative class action lawsuit against SAKS alleging SAKS improperly and illegally assessed and collected charge backs from its vendors. SAKS had refused to produce the audit report claiming it was protected from disclosure by attorney client privilege even though SAKS had previously provided it to the Securities Exchange Commission and the United States Attorney’s Office for the Southern District of New York.

For more information, please contact Tousley Brain Stephens attorneys Kim D. Stephens or Nancy A. Pacharzina.

Share This

Copy Link to Clipboard