Textile Group Accuses Limited of Fraud

A U.S. textile makers group accused the Limited clothing store chain and two apparel importers of defrauding the government by falsely declaring that goods produced in China were the product of Hong Kong. A lawsuit filed in U.S. District Court in Los Angeles by the American Textile Manufacturers Institute said the Limited had been misidentifying the origin of garments for years to allow it to avoid paying hefty customs duties and penalties and to dodge country quotas. The Limited, based in Columbus, Ohio, said it has not had time to review the complaint but that it does not tolerate violations of the law or of its policies by its suppliers. An officer for the chain noted that neither the U.S. Customs Service nor the Justice Department joined the group in the litigation. Limited shares sank 25 cents to close at $17.625 on the NYSE.