A judge in New York has ruled that Alibaba must face a lawsuit by a U.S. toymaker alleging that the Chinese ecommerce giant's online platforms were used to sell counterfeit Squishmallows.
Judge Jesse Furman of the Southern District Court of New York refused Alibaba's request to dismiss the case filed by Kelly Toys Holdings, which makes the popular plush toys.
Kelly Toys is owned by Jazwares, a toy company that is controlled by billionaire Warren Buffett's Berkshire Hathaway.
There was no immediate comment by Alibaba, China's biggest ecommerce company.
Kelly Toys alleges that sales of faked Squishmallows via Alibaba websites have continued despite demands that they be stopped.
