Alibaba Must Face US Lawsuit Over Counterfeit Squishmallows

Judge Rejects Alibaba's Motion to Dismiss Case Filed by Berkshire Hathaway-Owned Kelly Toys Holdings

US District Judge Jesse Furman has ruled that Alibaba must face a lawsuit by US toymaker Kelly Toys Holdings, alleging that Alibaba's online platforms were used to sell counterfeit Squishmallows.
Kelly Toys, owned by Jazwares, a toy company controlled by Warren Buffett's Berkshire Hathaway, alleges that sales of counterfeit Squishmallows on Alibaba's platforms have continued despite previous lawsuits demanding they be stopped.
Kelly Toys had earlier filed a case to stop about 90 ecommerce companies from selling counterfeit versions of the toys, and named Alibaba as a defendant in March.
Alibaba's motion to dismiss was based on the grounds that it was named in the lawsuit as Alibaba.com instead of its formal corporate name.
The court held that the claims were plausible, so the motion to dismiss them was denied.