Joint declarations were filed to courts in Chicago and Boston by lawyers representing the companies and their subsidiaries, requesting that two legal cases be dismissed “without prejudice” by their judges.
The filings did not contain details on why they had decided to drop their complaints or whether any settlement had been made. Neither firm immediately responded to a request for comment on the filings on Friday.
Shein’s lawsuit against Temu, filed last December in the US District Court for the Northern District of Illinois, alleged that Temu told social media influencers to make disparaging remarks about the fast-fashion retailer, and tricked customers into downloading the Temu app using “impostor” social media accounts.
How Shein and Temu are changing the face of China’s vast export machine
How Shein and Temu are changing the face of China’s vast export machine
Temu’s complaint alleged Shein “forces manufacturers to sign loyalty oaths certifying that they will not do business with Temu”.
In previous statements, both firms denied any wrongdoing in the cases.
Shein, founded in China, and valued at US$66 billion, sells fast fashion at rock bottom prices, including dresses priced at US$10 and bike shorts for around US$5. The company produces clothing, mainly in China, that is sold online in the US, Europe and Asia.
Temu, whose parent company PDD Holdings also owns Chinese shopping platform Pinduoduo, similarly sells low-priced clothing but is equally well known for stocking cheap headphones and home appliances.
According to a note from HSBC analysts published this week, Temu is targeting US$16 billion in gross merchandising volume in 2023, versus consensus estimates of US$11 billion.