Finance
Judge Lifts Judicial Control on Two Italian Fashion Firms in Worker Exploitation Case
Published by Global Banking & Finance Review®
Posted on March 30, 2026
2 min readLast updated: March 30, 2026
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An Italian judge in Milan has lifted judicial control over fashion firms Alberto Aspesi and Dama Spa (parent of Paul & Shark) in a worker exploitation case, marking a rare instance against the drift of similar interventions in the luxury fashion sector.
Judicial Control Lifted for Italian Fashion Firms in Worker Exploitation Case
Overview of the Judicial Decision and Its Implications
Background of the Case
MILAN, March 30 (Reuters) - 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 on Monday, 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.
Details of the Investigation
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.
Judge's Ruling and Reasoning
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 labour 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.
Prosecutors' Response and Next Steps
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.
Broader Context in the Fashion Industry
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 labour violations, while another 13 have been subject to inspections - cases that have tainted the sector's image.
(Reporting by Emilio Parodi, editing by Crispian Balmer and Hugh Lawson)
Key Takeaways
- •Judicial oversight lifted: Judge Roberto Crepaldi ruled there's insufficient evidence implicating Aspesi or Dama Spa’s directors in exploiting migrant workers, attributing responsibility to subcontractors instead citeturn0news0.
- •Sector-wide crackdown: This comes amid a broader legal campaign—brands like Dior, Armani, Valentino, Tod’s, Loro Piana have faced or are under oversight for labour abuses in their subcontracting chains (terrelibere.org).
- •Industry reform underway: In May 2025, a Legality Protocol and transparency platform were launched to improve supply‑chain ethics; a push encompassing documentation, certification, and monitoring aims to prevent exploiting practices in Italian luxury production (transition-pathways.europa.eu)
References
Frequently Asked Questions about Judge lifts judicial control on two Italian fashion firms in worker exploitation case
1Which Italian fashion firms were involved in the worker exploitation case?
Alberto Aspesi and Dama Spa, owner of the Paul & Shark brand, were the two Italian fashion firms involved.
2Why was judicial control lifted from the two Italian fashion firms?
The judge found there was no proof the companies' directors were complicit in worker exploitation, attributing responsibility to subcontracted workshops.
3Who remains under investigation in the Italian fashion sector?
Seven high-end brands have faced judicial administration due to suspected labour violations, and 13 others have been inspected.
4Will the case continue following the judge’s decision?
Milan prosecutors plan to appeal the decision, so a three-judge panel will decide whether to reimpose judicial oversight.
5Does being under investigation mean the companies are guilty?
No, being placed under investigation does not imply guilt or mean the case will go to trial.
