Navajo Nation Suing Urban Outfitters For Millions

(RTTNews) - Urban Outfitters will potentially have to pay millions of dollars for using the word "Navajo" in its products after a federal judge in Arizona ruled that the Navajo Nation tribe did not delay the lawsuit filing.

The retail giant had urged the court to dismiss the case as the tribe knew or should have known that the company had been using the name for its items such as necklaces, jackets and underwear for years and delayed filing a lawsuit.

Urban Outfitters had started using the "Navajo" name in 2001. The tribe had filed a lawsuit first in 2012, or about 11 years after the company began using the name.

The Navajo tribe has not disclosed the amount of money it is seeking in damages from the company, however, there is a possibility that it could rise up to millions if a court rules in their favor.

According to reports, the tribe wants all the profits generated from the Navajo-themed sales or $1,000 per day-- about three times the profit generated by marketing and retail of products using the name.

Meanwhile, Goldman Sachs has dropped the target share price of Urban Outfitters. The brokerage currently has a $33.00 price objective on the retailer's stock, down from their previous price of $35.00. The brokerage currently has a "buy" rating on the apparel retailer's stock.

URBN is currently trading at $33.94, down $0.35 $1.02, on the Nasdaq.