The FTC has sued to block Tapestry's proposed $8.5 billion acquisition of Capri Holdings. The deal would combine Tapestry's Coach, Kate Spade, and Stuart Weitzman brands with Capri's Versace, Jimmy Choo, and Michael Kors under one parent company. Regulators argue the merger would harm competition in the fashion industry and negatively impact consumers and workers. Tapestry and Capri dispute the FTC's claims, saying competition remains robust across different price points and retailers. The acquisition aims to help the companies better compete globally against European luxury brands.