PARIS:The luxury goods industry's campaign against counterfeiting has scored a victory against Sam's Club, a division of Wal-Mart, the US retailer. The discounter announced last week it would pay an unspecified amount to LVMH, owner of the Italian fashion house Fendi, to defuse a lawsuit relating to the sale of fake bags and wallets at Sam's Club, which it admitted. Adam Jonesreports

Sam's Club operates on a membership system and promises customers "name brands at warehouse savings". Fendi, founded in 1925, is an increasingly important brand for LVMH, whose fashion and leather goods division is dominated by Louis Vuitton.

Fendi sued Sam's Club last year. As part of the settlement announced last week, it will abandon this litigation. In the lawsuit, Fendi claimed that the fakes supplied to Sam's Club had been sold at up to 68 per cent lower than usual. They were still selling for hundreds of dollars.

Doug McMillon, chief executive of Sam's Club, said: "We have programmes in place to protect the intellectual property rights of others. However, during this litigation, Fendi provided us with information that the 12 types of bags and wallets specifically listed in its complaint were not genuine. We accept this information."