Fendi S.R.L. and Wal-Mart Stores Inc.’s warehouse division Sam’s Club settled a dispute Wednesday over allegations that Sam’s Club was selling counterfeit Fendi bags in its stores, Reuters reports.

The companies reportedly said Sam’s Club will pay Fendi a confidential settlement amount, and Fendi will dismiss its lawsuit against Sam’s Club.

Last year, Fendi sued Wal-Mart, accusing the world’s largest retailer of selling counterfeit handbags and passing them off as genuine at its Sam’s Club warehouse stores.

The suit, filed in U.S. District Court in Manhattan, said Sam’s Club stores sold knock-off handbags, wallets and key chains that were identified as “genuine” Fendi products.

The suit by Fendi said that Wal-Mart had never purchased its products and never asked Fendi if any of the items bearing its trademark were genuine.

“During this litigation, Fendi provided us information that the 12 types of bags and wallets specifically listed in its complaint were not genuine,” Doug McMillon, president and chief executive officer of Sam’s Club, said in a statement. “We accept this information.”

Sam’s Club said it has removed all Fendi-labeled bags, wallets, and scarves from its shelves, Reuters reports. Customers who purchased bags, wallets, or scarves with a Fendi label at a Sam’s Club can return the item for a full refund, the company said.

JCK