The Shein and Temu lawsuit is actually a cluster of overlapping cases: two consolidated federal suits in Washington, D.C., where each company accuses the other of illegal tactics to dominate the U.S. fast-fashion market, plus a parallel copyright trial in London’s High Court. Shein says Temu facilitates counterfeiting of its products, steals trade secrets, and pays influencers to disparage it. Temu says Shein abuses the copyright takedown system, files fraudulent notices with the U.S. Copyright Office, and pressures suppliers to boycott Temu. As of 2026, a federal judge has narrowed both sides’ claims but let the core allegations move forward.
The Original 2023 Cases and Their Quick Dismissal
Temu opened the fight in July 2023 with an antitrust suit in Boston federal court, Whaleco Inc. v. Shein US Services LLC (No. 1:23-cv-11596), accusing Shein of forcing manufacturers into exclusive dealing arrangements to shut Temu out of the supply chain.1Bloomberg Law. Fashion Retailer Shein Sued by Rival Temu With Antitrust Claims Shein countered in Chicago federal court, alleging Temu had worked with influencers to trash Shein on social media.2Reuters. Fast Fashion Retailer Temu Sues Rival Shein Over US Antitrust Law
On October 26, 2023, both companies jointly dismissed those cases without prejudice, each paying its own legal fees. Neither side explained the move in the filings.3Fashion Dive. Shein, Temu End Lawsuits The peace was brief. Within weeks, Temu refiled in the U.S. District Court for the District of Columbia, and that court has been the center of the litigation ever since.
What Temu Is Suing Shein For
Temu’s December 2023 complaint, Whaleco Inc. v. Shein Technology LLC (No. 1:23-cv-03706), calls Shein’s conduct an “anticompetitive, mafia-style scheme.” The heart of the case is Temu’s claim that Shein filed thousands of improper Digital Millennium Copyright Act takedown notices to yank competing product listings off Temu’s platform, pressured suppliers to stop selling on Temu, and made misrepresentations to the U.S. Copyright Office.4The Fashion Law. Shein-Temu Legal Battle Collides as D.C. Court Combines Rival Lawsuits
In February 2025, Temu asked for a preliminary injunction to stop the takedowns. Judge Timothy J. Kelly denied the request, finding Temu had not shown irreparable harm. The court noted that any financial injury could be repaired with money damages, that Temu’s users appeared to blame Shein rather than Temu for the disruptions, and that the staff hours Temu spent processing the notices did not rise to the level of injury an injunction is meant to prevent.5Eric Goldman Blog. The Competition Between Temu and Shein Moves Into a Courtroom
What Shein Is Suing Temu For
Shein’s August 2024 complaint, Roadget Business PTE v. Whaleco, Inc. (No. 1:24-cv-02402), presents Temu not as an open marketplace but as a tightly managed operation that dictates what its sellers list and how they price. Shein alleges Temu encourages sellers to copy Shein products and product photography, facilitates the sale of counterfeit goods, and stole trade secrets through a Temu employee who allegedly obtained Shein pricing data and best-seller lists.6Fashion Dive. Shein Lawsuit Against Temu Alleges Copyright, Fraud
Shein also alleges Temu created fake accounts on X impersonating the Shein brand, used counterfeit trademarks to redirect shoppers to Temu, and paid social media influencers to claim Temu’s products were cheaper and better quality than Shein’s. Judge Kelly found the influencer allegations actionable as both direct and contributory false advertising under the Lanham Act.7MLex. Outcome of Shein-Temu Row Could Inform Influencer Strategies for Brands
What the Judge Has Kept and Cut
Both sides have lost pieces of their cases while keeping the core intact.
In September 2025, the court dismissed Temu’s antitrust and trade secret claims against Shein. It let Temu proceed on DMCA abuse, copyright and trade dress infringement, fraud on the Copyright Office, and unfair competition.4The Fashion Law. Shein-Temu Legal Battle Collides as D.C. Court Combines Rival Lawsuits
In January 2026, the court trimmed Shein’s case. It dismissed Temu’s parent company, PDD Holdings, for lack of personal jurisdiction and threw out Shein’s product disparagement and trademark dilution claims. Shein’s intellectual property infringement and unfair competition claims survived.4The Fashion Law. Shein-Temu Legal Battle Collides as D.C. Court Combines Rival Lawsuits
On April 13, 2026, Judge Kelly consolidated the two cases onto a single procedural track for discovery and case management, meaning the accusations run in one courtroom on one schedule.4The Fashion Law. Shein-Temu Legal Battle Collides as D.C. Court Combines Rival Lawsuits
The London Copyright Trial
A separate front is playing out in London. As of May 2026, Shein and Temu are on trial before Mrs Justice Bacon in the High Court, where Shein accuses Temu of “industrial-scale” copyright violations over product photographs. Shein claims Temu’s third-party merchants copied images directly from Shein’s site. Temu argues it is a neutral platform and that Shein cannot prove it owns many of the disputed photos.8Financial Times. Shein and Temu Trial at London’s High Court
Temu has accused Shein of relying on “backdated and fabricated contracts” between suppliers and photographers to establish ownership, and its counsel argued Shein had to abandon large parts of its case before trial. Shein denies fabrication, attributing the discrepancies to differences in Chinese business practices and saying most disputed images were taken by its own employees. Temu has filed a counterclaim seeking damages over listings it was forced to remove after Shein obtained an injunction. Reporting from the trial indicates Temu dropped its defense to Shein’s copyright claims over roughly 2,300 photos. The trial is expected to last two weeks, and no judgment had been issued as of late May 2026.9Claims Journal. Shein Temu Trial at London High Court
Other Lawsuits Facing Shein and Temu
Their fight with each other is only part of the litigation surrounding both companies.
Tariff Pricing Class Actions
In March 2026, Cook County, Illinois, resident Lola Russell filed proposed class actions against Temu and Shein alleging they raised prices by as much as 377% to account for tariffs imposed under the International Emergency Economic Powers Act, then kept the higher prices after the U.S. Supreme Court struck those tariffs down in late 2025. The complaints allege violations of the Illinois Consumer Fraud Act and unjust enrichment and seek nationwide class certification.10Legal Newsline. Temu, Shein Hit With Class Actions Demanding Tariff Refunds By April 21, 2026, the cases had been amended to include additional product categories such as beauty and apparel.11Novadata. Temu Shein Class Action Tariff Windfall
Temu Data Collection Lawsuits
Temu is defending Ziboukh, et al. v. Whaleco Inc. (No. 1:23-cv-15653) in the Northern District of Illinois, where plaintiffs allege the Temu app secretly harvests personal and biometric data and functions as spyware, in violation of the Computer Fraud and Abuse Act and the Electronic Communications Privacy Act. U.S. District Judge Margo K. Brodie ruled the plaintiffs must arbitrate their claims, upheld Temu’s arbitration agreement, and dismissed claims brought on behalf of non-users for lack of standing.12Top Class Actions. Temu Class Action Lawsuit Claims App Steals User Data
Shein Privacy and Shipping Actions
Shein’s parent company Zoetop paid $1.9 million to New York’s attorney general in October 2022 to resolve allegations that it concealed the scope of a 2018 data breach affecting 39 million Shein accounts. Investigators found the company had notified only a fraction of the affected customers and had falsely claimed just 6.42 million consumers were impacted.13New York Attorney General. Attorney General James Secures $1.9 Million From E-Commerce Shein and Romwe Owner Zoetop In February 2026, Texas Attorney General Ken Paxton sued Shein, alleging it failed to disclose that consumer data could be accessible to the Chinese government under China’s intelligence and cybersecurity laws.14DLA Piper Privacy Matters. Texas AG Sues Shein Over Alleged Deceptive Practices and Data Privacy Risks
In July 2025, Shein agreed to a $700,000 settlement with the district attorneys of Napa, Los Angeles, San Francisco, and Sonoma counties over allegations that it routinely took more than 30 days to ship orders, in violation of California law, without providing delay notices or refunds. The settlement bars Shein from making misleading statements about delivery times.15Los Angeles County District Attorney. Fast Fashion Company Shein Settles Consumer Protection Lawsuit for $700,000
Designer RICO Case
In July 2023, independent designers Krista Perry, Jay Baron, and Larissa Martinez sued Shein in the Central District of California, alleging copyright infringement and violations of the RICO Act by way of an AI-driven design-copying system. Judge Mark C. Scarsi ruled in November 2024 that the designers could proceed with their RICO claims. The case settled in September 2025.16Law360. Krista Perry et al v. Shein Distribution Corporation et al
Text Message Class Actions
A proposed class action filed in May 2026 accuses Temu of violating the Telephone Consumer Protection Act by sending promotional texts outside the permitted 8 a.m. to 9 p.m. window.17ClassAction.org. Temu Sent Unlawful Telemarketing Texts to Consumers, Class Action Claims Shein faces a similar pending TCPA class action in the Southern District of Indiana over Do-Not-Call Registry allegations.18Fashion Dive. Shein Class Action Lawsuit Do Not Call
Where the Cases Stand Now
The consolidated D.C. federal case is the main event. Shein’s surviving claims that Temu facilitates counterfeiting, steals trade secrets, and copies its imagery are moving forward alongside Temu’s surviving claims that Shein weaponizes the DMCA, defrauds the Copyright Office, and engages in unfair competition. The London trial is awaiting a ruling from Mrs Justice Bacon. Consumer class actions over tariff pricing, privacy, and marketing continue in parallel, and separate policy changes closing the de minimis import exemption for low-value packages have reshaped the economics both companies rely on in the U.S. market.19CNBC. Shein, Temu See US Demand Plunge on De Minimis Trade Loophole Closure