Nordstrom has agreed to settle a lawsuit brought by outdoor clothing maker Patagonia that accused it of selling counterfeit apparel, court documents show.

The companies said in a joint filing, opens new tab in the U.S. District Court for the Central District of California on Wednesday that they have signed a settlement agreement, asking to dismiss the case.

Representatives for Patagonia and Nordstrom did not immediately respond to requests for comment and more information about the settlement on Thursday.

Patagonia sued Nordstrom last year, claiming the Seattle-department store chain was selling thousands of “obvious counterfeits” of its sweatshirts and t-shirts after the end of their agreement for Nordstrom to sell Patagonia clothing.

Patagonia accused Nordstrom of trademark and copyright infringement, asking the court for an unspecified amount of monetary damages and an order blocking the alleged counterfeiting.

Nordstrom denied the allegations in a court filing later that year.

“To the extent any of the products at issue were not genuine Patagonia products, Nordstrom had no knowledge of this at the time these products were purchased,” Nordstrom said.

Nordstrom also said it had terminated its relationship with the company it bought the clothes from, pulled the alleged counterfeits from its shelves and offered to pay Nordstrom all profits from their sales.

The case is Patagonia Inc v. Nordstrom Inc, U.S. District Court for the Central District of California, No. 2:23-cv-04168.