American Eagle sues Payless Shoesource

WARRENDALE, Pa. --Clothing retailer American Eagle Outfitters Inc. said Friday it filed a lawsuit against shoe retailer Payless ShoeSource Inc. alleging the company misled consumers to believe it is selling genuine American Eagle merchandise.

The suit was filed in United States District Court Eastern District of New York.

American Eagle said Topeka, Kan.-based Payless is marketing shoes and accessories with advertising and promotional materials that look and feel like American Eagle's marketing style.

American Eagle also said Payless is falsely claiming to be the exclusive source of American Eagle's merchandise creating consumer confusion.

It said the confusion arises from Payless' acquisition last year of American Eagle brand of footwear and accessories from Jimlar Corp.

"Our most valuable asset is our brand," said Neil Bulman Jr., American Eagle Outfitters' vice president and general counsel, in a statement. "The mounting public confusion that Payless created has compelled us to take this action."

The company said Payless is unfairly benefiting from American Eagle's brand.

American Eagle is seeking a court order to require Payless to eliminate the misleading impression it is selling American Eagle merchandise.

Representatives of Payless were not immediately available for comment.

Shares of American Eagle added 64 cents to close at $30.89, while Payless shares gained 37 cents to finish at $33.98, both on the New York Stock Exchange.