Tiffany sues Costco over fake engagement rings

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Tiffany & Co. sued Costco Wholesale Corp on Thursday citing the warehouse club chain is selling a fake diamond engagement bearing the luxury retailer's name.

CS monitor reported the lawsuit calls on Costco to forfeit profits from their "Tiffany ring" sales and asks for $2 million in damages per infringement.

The luxury retailer claims hundreds, if not thousands of Costco members purchased engagement rings they thought were original Tiffany products, but in fact were not.

Following an investigation that revealed a Costco in Huntington Beach, Calif. was selling what they claimed to be Tiffany Diamond engagement rings, the luxury retailer discovered the wholesale chain was only using their name to promote in-store sales and failed to use the Tiffany trademark online for the same products to avoid detection, according to the lawsuit.

Jeffrey Mitchell, one of the Tiffany lawyers, expressed disappointment in Costco's actions and said the luxury retailer maintains aggressive and rigorous intellectual property programs and regularly takes action against infringes.

"This is not the kind of behavior people expect from a company like Costco, and this case will shed a much needed light on this outrageous behavior," Mitchell said.