‘Made in USA’ jeans case settles

Designer denim brand AG Adriano Goldschmied is changing the label on its jeans after a class-action lawsuit in San Diego federal court challenged its “Made in USA” pedigree.

The label change comes as a result of a settlement reached in the case, and it looks as though past AG customers will also benefit. A judge has tentatively approved the terms of the settlement: Californians who bought AG jeans with the label “Made in USA” or “Made in USA of Imported Fabric” between June 4, 2010, and Dec. 31, 2015, may be eligible to claim either a $20 voucher for any product on agjeans.com or for a pair of AG pants of the company’s choosing.

David Paz, an insurance broker, bought a pair of the brand’s “Protege” jeans from a San Diego Nordstrom and said he was swayed by the label indicating the pants were made in the USA. He said in the lawsuit he didn’t mind paying a bit more for the jeans, thinking he was supporting U.S. jobs and the economy.

He claimed he later learned that many of the components, including the fabric, buttons, rivets, thread and parts of the zipper were made in other countries.

AG admitted in court papers that the fabric is made outside the U.S. and the buttons and rivets are made in Italy.

The designer sold about 1 million products with the labels during the four-year period, and each item costs an average of $200 each, according to court records.

AG and Nordstrom have agreed to advertise the settlement terms on their websites, as well as reach out to customers who may be eligible class members. A final approval of the settlement isn’t expected until later this year.

The lawsuit was one of several nationwide that challenged the U.S. origins of products, including a similar suit also filed in San Diego federal court against Citizens of Humanity jeans. That case is ongoing.

Federal law is more lenient when it comes to what is considered made in the USA, while California law is more restrictive.