Friday, November 22, 2024

Shein: A Look at the Lawsuits Facing an Ultra-Fast Fashion Giant

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Shein is preparing to go public, confidentially lodging a pre-IPO application with the U.K.’s Financial Conduct Authority earlier this month with the aim of floating on the London Stock Exchange. The China-founded, Singapore-based ultra-fast fashion titan has been garnering headlines over the past year in connection with its reported ambitions to list on a public exchange, initially in the United States and more recently, in London after facing pushback from stateside lawmakers who reportedly raised questions/concerns about Shein’s murky supply chain (including potential ties to forced labor), alleged avoidance of U.S. import taxes and Customs’ oversight, and infringement of others’ copyrights and trademarks, among other widely-reported issues.

Ahead of a potential listing in London later this year, one that would reportedly see it offer up shares valued at roughly $63 billion, we took an updated dive into the state of Shein’s legal dealings (you can find our earlier review here).

In particular, we looked at the complaints waged against Shein and its subsidiaries/related entities, including Shein Distribution Corp., Shein US Services, Shein Fashion Group, Inc., Zoetop Business Co., and Roadget Business PTE, among others (collectively, “Shein”) in federal courts in the U.S. in order to get a handle on what the legal landscape looks like for the company that has nabbed the title of “the largest and fastest-growing apparel company in the world.”

When reviewing Shein-specific court documents filed between January 2020 and June 2024, we found the following …

> Shein has been on the receiving end of new lawsuits since the beginning of 2020 when the first wave of litigation was initiated against the company in federal courts in the U.S. By our count, Shein is currently facing upwards of 40 ongoing lawsuits. (Cases that have been consolidated are counted individually and identified as currently pending when appropriate.)


This is a short excerpt from a Deep Dive that was published exclusively for TFL Pro+ subscribers. Inquire today about how to sign up for a Professional subscription and gain access to all of our exclusive content.

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