An Italian judge has lifted the judicial control imposed by Milan prosecutors on two Italian fashion firms over alleged worker exploitation, court documents seen by Reuters showed, meaning a court-appointed administrator need no longer monitor the two firms' operations.
It is the first time a judge has not upheld such a measure in a series of similar cases involving the high-end fashion sector.
Milan prosecutors had placed the two firms under investigation on March 17, along with their two directors and three Chinese nationals who owned two workshops to which the brands had subcontracted production.
In a 25-page ruling seen on Monday, Judge Roberto Crepaldi said "the conditions do not exist" for placing Alberto Aspesi and Dama Spa, owner of the Paul & Shark brand, under judicial oversight.
He added it had not been proven that the two companies' directors were complicit in the crime of labor exploitation.
The judge said the exploitation and underpayment of migrant workers had been established, but he attributed responsibility to the two subcontracting workshops rather than to the two client companies. Milan prosecutors said they would file an appeal on Tuesday over the judge's decision, asking a court to confirm the judicial oversight measure.
A three-judge panel will then decide whether to uphold the lower court judge's ruling or reimpose judicial control.
Being placed under investigation does not imply guilt or mean the case will go to trial.
Aspesi and Dama have not commented on the case, while the lawyer for Dama's director said he ruled out any criminal liability for his client, Andrea Dini.
The March 17 move had brought to seven the number of high-end brands put under various forms of judicial administration because of suspected labor violations, while another 13 have been subject to inspections - cases that have tainted the sector's image.
