Lawsuit vs. mall retailer dropped

HARRISONBURG — A lawsuit alleging that an Apple Blossom Mall retailer sold counterfeit goods has been dismissed.

New York City-based Coach Inc. and Coach Services Inc. filed the lawsuit Oct. 1 in U.S. District Court in Harrisonburg, alleging that Huong Ngoc Nguyen — owner and operator of Europe Nails and Perfect Nails — knowingly sold counterfeit Coach products.

According to a document filed Tuesday in the same court, both parties agreed to dismiss the suit without prejudice — with each party to bear their own cost and fees.

According to the lawsuit, on July 19, investigators for Coach and Virginia State Police officers searched the stores and allegedly found a combined 40 counterfeit Coach handbags and 23 counterfeit Coach wallets.

Coach — which makes, markets and sells products including handbags, wallets, accessories, eyewear, footwear, jewelry and watches and has annual global sales that exceed $3 billion — requested $2 million per trademark infraction, according to the lawsuit.

The complaint alleges that Nguyen, of Bunker Hill, W.Va., “had full knowledge of the counterfeiting activity taking place at her property” and that Nguyen was trying to capitalize financially by infringing on the Coach trademark.

The Coach merchandise wasn’t the only alleged counterfeit brand discovered on July 19.

According to search warrants, a combined 7,500 allegedly counterfeit products were seized that day by police from the Dollar & Up Store, Europe Nails and Perfect Nails.

— Contact Melissa Boughton at mboughton@winchesterstar.com