China’s Shein hit with lawsuit citing RICO violations, a law originally used against organized crime

By MICHELLE CHAPMAN
AP Business Writer

China’s fast fashion retailer Shein is facing a lawsuit that claims the clothing maker’s copyright infringement is so aggressive, it amounts to racketeering. The filing this week claims that Shein is in violation of the Racketeer Influenced and Corrupt Organizations Act, better known as RICO, a law originally crafted to prosecute organized crime. The lawsuit is just the latest in a series of difficulties Shein has faced. In May a bipartisan group of two dozen lawmakers asked the Securities and Exchange Commission to put the brakes on an initial public offering by Shein until it verified that it does not use forced labor from the country’s predominantly Muslim Uyghur population.