Avery Dennison Sued by Taiwanese Firm

A Taiwanese company facing federal fraud charges in the U.S. has sued adhesive label maker Avery Dennison Corp. for alleged fraud and theft of trade secrets and is seeking $262 million in damages. The suits, filed in Taiwan and China, contain allegations similar to those made by Avery Dennison against the Asian company, Four Pillars Enterprise Co., in a September 1997 lawsuit. Four Pillars, a Taipei-based producer of adhesive tape, alleges that Pasadena-based Avery feigned interest in forming a joint venture in China so it could use the company’s information to establish its own factory. Four Pillars Chairman Pin Yen Yang and his daughter Hwei Chen “Sally” Yang have been charged by the U.S. Justice Department with violating the Economic Espionage Act for allegedly committing mail fraud, wire fraud and money laundering. The federal trial is scheduled to begin March 18. In addition, Avery filed its own suit against the father and daughter in September 1997, alleging theft of trade secrets, unfair competition and fraud. That suit will be tried after completion of the federal trial. Since ending talks with Four Pillars in 1994, Avery has opened one plant, two distribution centers and a sales office in China. The company’s shares dropped $2.25 to close at $42.69 on the New York Stock Exchange.