The internet has incentivized companies to stay on top of the news cycle. Apparently concerned that investors will consider the recent trade secret suit filed against it by Chico's to be bad news for the stock, Cache strongly rebutted the allegations of Chico's that it hired two Chico's employees and utilized the stolen trade secrets allegedly misappropriated by those employees. We reported on this matter already here: http://wombletradesecrets.blogspot.com/2010/07/trade-secrets-of-womens-clothing.html
That the press release was carried by MarketWatch didn't escape our attention.
Here's what Cache says:
"The Company noted that the allegations made by Chico's are false and it will vigorously defend its position. Cache has built its business with a reputation for high-quality, sophisticated and fashionable designs and maintaining the integrity of its brand is the Company's highest priority. The Company noted further that it believes Chico's is using baseless claims to impair its reputation. Several of the styles that Chico's claims were copied by Cache were never produced by Chico's or White HouseBlack Market and, in fact, are just clipped pages from Fashion magazines showing styles created by companies other than Chico's and White HouseBlack Market. In addition, many of the styles that Chico's claims were copied look nothing like those produced or purchased by Cache. Finally, several of the allegedly copied styles are successful styles that Cache has carried previously, which were re-colored and repeated in the Spring and Summer 2010 collections. The Company believes this lawsuit is frivolous and a waste of shareholder money and consumer tax dollars."
Consumer tax dollars? We'll keep an eye on this one for you.