Walmart Inc, Target Corp and Bed Bath & Beyond Inc will face a lawsuit for selling linen falsely labeled “100 per cent Egyptian Cotton” or “100 per cent Long-Staple Egyptian cotton” despite being suspicious of their origin. A recent decision by US District Judge Vincent Briccetti in White Plains, New York, addressed claims that consumers nationwide overpaid for mislabeled cotton produced by an Indian textile company, Welspun India.

In a 39-page decision, Briccetti said consumers may pursue breach of warranty and negligent misrepresentation claims against the retailers and a U.S. unit of Welspun, and fraud claims against the Welspun unit. He dismissed fraud claims against the retailers because there was no “strong inference of fraudulent intent.”

According to the complaint, the retailers sold Welspun’s “Egyptian” cotton well into 2016 even though Target and Bed Bath & Beyond had known for several months, and Walmart had known as early as 2008, that the cotton was mislabeled. The cotton was sold under the Fieldcrest, Royal Velvet, Better Homes and Gardens, Canopy, Crowning Touch and Perfect Touch brands