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Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Shein sued Temu in August 2024, alleging that Temu misused confidential sales data and engaged in related intellectual-property and unfair-competition conduct, including counterfeiting. On January 7, 2026, a federal judge let Shein’s trade-secret and false-advertising claims proceed against Temu’s U.S. marketplace operator, WhaleCo, but dismissed other claims and dismissed PDD Holdings Inc. from the case. The ruling did not establish that Temu stole trade secrets or sold counterfeits.
What Shein says Temu did
Roadget Business Pte. Ltd., identified in the court opinion as Shein, sued WhaleCo Inc., the company that operates the Temu marketplace, PDD Holdings Inc., and other alleged Temu-related entities in the U.S. District Court for the District of Columbia. Shein’s complaint described a confidential dataset it called “Best Seller Data.” Shein alleged that it included its best-selling styles, rankings, internal pricing information, photographs and other business information.
According to Shein’s complaint, the company used the dataset to monitor costs and market conditions and to set sales strategy. Shein said it protected the information with access restrictions, passwords, employee training and procedures for destroying data. It alleged that Temu knew the information was confidential, distributed it to sellers and suppliers, and encouraged them to create and sell the same products. Those are allegations in the complaint, not facts established by the court.
The counterfeiting and advertising allegations
Shein also brought copyright and trademark claims, including a claim involving trademark counterfeiting, as well as unfair-competition and false-advertising claims. The complaint alleged that Temu used SHEIN marks in social-media accounts that impersonated Shein and that influencers directed by Temu were instructed to make comparative claims about price and quality. The January 2026 opinion did not find that these allegations were true.
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What the January 7, 2026 ruling decided
Judge Timothy J. Kelly ruled on a motion to dismiss, which tests whether claims are sufficiently pleaded to proceed—not whether the plaintiff has proved them. The court’s results were mixed:
| Party or claim | January 7, 2026 result |
|---|---|
| Federal and District of Columbia trade-secret misappropriation claims against WhaleCo | Allowed to proceed past dismissal |
| False-advertising claim against WhaleCo | Allowed to proceed past dismissal |
| Product-disparagement and trademark-dilution claims against WhaleCo | Dismissed |
| PDD Holdings Inc. | Dismissed for lack of personal jurisdiction |
For the trade-secret claims, the court concluded at this stage that Shein had plausibly alleged that the Best Seller Data qualified for protection and that misappropriation had been sufficiently pleaded. That is a decision about the adequacy of the allegations, not a finding that Temu misappropriated the data. The opinion does not report a final decision on liability or damages.
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How this case differs from Temu’s lawsuit against Shein
Temu had separately sued Shein in December 2023. That is a different action, with different claims and its own procedural history. PDD Holdings’ 2025 annual report said Temu’s earlier case remained ongoing as of the report’s date, after some claims were allowed to proceed and others were dismissed. That case does not establish what happened in Shein’s later lawsuit against Temu.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the ruling does—and does not—mean
- It means Shein’s federal and D.C. trade-secret claims and its false-advertising claim against WhaleCo cleared the dismissal stage.
- It does not mean the court found Temu stole confidential information, counterfeited products or was liable for damages.
- It also does not mean every claim survived: the court dismissed product-disparagement and trademark-dilution claims against WhaleCo and dismissed PDD Holdings for lack of personal jurisdiction.
The January 7, 2026 opinion establishes these procedural rulings. It is not a final merits judgment, and the available court record described here does not establish what happened in the case after that date.
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