From Reuters:

Italian fashion group Fendi S.R.L. sued Wal-Mart Stores Inc. in U.S. federal court on Friday, accusing the world's largest retailer of selling counterfeit handbags and passing them off as genuine at its Sam's Club warehouse stores.

Sam's Club stores in California, New York, Florida and other states sold knock off handbags, wallets and key chains that were identified as "genuine" Fendi products, according to the lawsuit filed in U.S. District Court in Manhattan.

The suit by Fendi said that Wal-Mart has never purchased its products and never asked Fendi if any of the items bearing its trademark were genuine...

Fendi, a unit of French luxury goods maker LVMH Moet Hennessy Louis Vuitton said in the suit that Wal-Mart has made millions of dollars selling the counterfeit goods.

Sam's Club stores, which sell everything from bulk groceries to office supplies, recently said it would ratchet up competition with rival Costco Wholesale Corp. by selling more luxury goods like fine wines and diamonds.