Alibaba Ordered to Face Lawsuit Over Alleged Counterfeit Sales of Squishmallows in New York Court

 On December 28, 2023, a New York judge ruled that Alibaba must face a lawsuit from a US toymaker. 

The lawsuit alleges that Alibaba's online platforms were used to sell counterfeit Squishmallows, a popular plush toy. Judge Jesse Furman of the Southern District Court of New York refused Alibaba's request to dismiss the case.

In a significant ruling, Judge Jesse Furman in New York has denied Alibaba’s motion to dismiss a lawsuit brought forth by U.S. toymaker Kelly Toys Holdings. The lawsuit alleges that Alibaba's online platforms facilitated the sale of counterfeit Squishmallows, a popular product by Kelly Toys.

The plaintiff, Kelly Toys Holdings, operates under Jazwares, a subsidiary of Alleghany Corp., ultimately controlled by Warren Buffett's Berkshire Hathaway. This legal action against Alibaba, China’s largest ecommerce entity, advances despite the company's efforts to dismiss the case. Alibaba's motion centered on its naming in the lawsuit as Alibaba.com rather than its formal corporate identity.

Alibaba, known for its significant presence in ecommerce, has yet to offer immediate commentary on this ruling. However, this decision underscores the gravity of the accusations levied against the platform regarding the alleged sale of counterfeit products, signaling a pivotal legal battle ahead.