Skechers 8-K Reveals Suit Over '3 Wheelers'

On March 6, 2002, Skechers filed a complaint captioned Skechers USA, Inc. v. Heeling Sports Ltd., Heeling Management Corp., Roger Adams And Charlie Beery. The complaint was filed in the U.S. District Court Central District of California and alleges Federal, California and common law unfair competition, intentional interference with economic relations and intentional interference with contract with respect to Skechers' "3 Wheelers." The suit was just revealed in a Form 8-K issued by Skechers.

Skechers seeks relief that includes enjoining defendants from certain actions, certain trebled money damages, punitive damages, restitution and attorney fees and costs. According to the 8-K, on April 4, 2002, a complaint captioned Heeling Sports Limited and Heeling Management Corp., v. Skechers USA, Inc. was filed in the U.S. District Court, Eastern District of Texas. The lawsuit alleges breach of confidential agreement and misappropriation of trade secrets and is with respect to Skechers' 3 Wheelers. The complaint seeks relief that includes permanent injunction enjoining Skechers from selling the 3 Wheeler skates, using any alleged confidential information and assignment of any intellectual property based on the plaintiff's alleged confidential information, and damages that include those sustained by the plaintiff as a result of Skechers' actions, profits and exemplary and punitive damages. Skechers believes that it has meritorious defenses to the claims made by Heeling and intends to defend these claims vigorously.