Lawsuits Against Walmart Inc, Bed Bath & Beyond Inc, And Target Corp Over Fake Welspuns Egyptian Cotton

The product was of low quality but labeled as a premium product — Egyptian cotton often keeps a premium price because of its prestige, quality – as it is lighter, softer and more durable fabric.

The 39-page report, discuss concerns such as consumers may pursue breach of warranty and negligent misrepresentation claims against the seller— a U.S. unit of Welspun, and fraud claims against the Welspun unit.

Briccetti dismissed fraud claims against the retailers because there was no 'strong inference of fraudulent intent.' New York and California consumers were given rights to sue the retailers for selling the wrong product under their respective states consumer protection laws.

A lawyer for Welspun and Bed Bath & Beyond declined to comment. Moreover, Walmart, Target and their respective lawyers did not answer any questions. The consumers lawyers did not immediately respond to the matter.

The complaint claims that the retailers sold Indias Welspuns 'Egyptian' cotton despite the false claims. In 2016 Target and Bed Bath & Beyond had known for several months about the fraud even though they did not react, and Walmart had known as early as 2008, that the cotton was mislabeled. The cotton was sold under the Royal Velvet, Better Homes and Gardens, Fieldcrest, Canopy, Crowning Touch and Perfect Touch brands, the courts document noted.