Or that the suit was based on a federal law aimed at computer hackers, not manufacturers of defective products.

FORBES: Billion-Dollar Bluff

The FTC suit will first go to an administrative law judge at the agency, then to federal courts if the losing side appeals.

WSJ: Regulators Sue POM Juice Maker Over Health Claims

But intellectual-property law experts say the suit represents a novel approach at a time when there are few legal protections for designs on apparel.

WSJ: Dueling Yoga Pants: Lululemon Takes Calvin Klein to Court

The CEO is embroiled in a law suit that alleges she cost the company millions of dollars during her two years at the helm of the New York-based cosmetics company which sells in high-end retailers like Sephora.

FORBES: How A CEO Self-Promoted Herself Into A Million-Dollar Court Case