Guess Drops Defamation Claims

Guess Inc. has dropped libel and slander claims from its lawsuit against a labor union and a pro-labor community group. The lawsuit had alleged that members of the Union of Needletrades, Industrial and Textile Employees distributed libelous fliers describing the apparel maker as a “sweatshop employer.” The lawsuit had also alleged that Los Angeles-based Guess was slandered at a public poetry reading sponsored by Common Threads, a pro-union community group. Guess said it dropped the claims partly because it did not want to incur the expense of litigating those issues, a company spokesman said. The company said it plans to proceed with legal action on other parts of the suit, including allegations that the union has engaged in improper picketing of its stores.