Law Firm Targets Retailers Over Alleged Garment Labor Abuse

A New York law firm is preparing a lawsuit alleging that some of the nation’s largest retailers and apparel companies are engaged in a conspiracy that has forced thousands of foreign garment workers into indentured servitude.

The law firm--Milberg, Weiss, Bershad, Hynes & Lerach--said it expects to file the suit in federal court in Los Angeles, where a news conference is planned. If the suit goes to trial, it would be the first courtroom test of claims that retailers are responsible for the labor violations of their apparel contractors.

The law firm has identified some potential targets but has not yet developed a final list of defendants, a spokesman for the firm said.

A draft of the suit alleges that Chinese garment contractors recruited thousands of workers from China, the Philippines and other countries, charging them fees of up to $7,000 each for an opportunity to work at garment production sites in the U.S. territory of Saipan.

The draft includes allegations of prison-like confinement. Workers who leave production facilities without permission are threatened with deportation and imprisonment in their home countries, according to the law firm, known as a specialist in securities fraud and class-action suits. The draft alleges that the companies and the Saipan garment operators are engaged in a racketeering conspiracy. It also claims that many of the workers are not paid for overtime.

The allegations, reported Thursday in Women’s Wear Daily, were greeted with skepticism in the industry.

“I would be extremely surprised if the charges turned out to be true,” said Tracy Mullin, president of the Washington-based National Retail Federation.

Mullin questioned whether retailers could be held liable for the legal violations of contractors.

“Retailers are not manufacturers,” she said. “They are sellers of goods.”

The Saipan operators produce apparel under private-label brands owned and sold by some retailers.