The legal counsel hired by China's biggest beverage maker to fight a lawsuit filed by Groupe Danone in Los Angeles has quit, lawyers of the French yogurt maker said [last week]. Latham Watkins, one of the biggest law firms in the United States, officially filed a paper to a Los Angels court last Friday, saying that the firm will no longer represent the case for Wahaha.

The withdrawal came two weeks after Latham Watkins hinted in court on October 25 that it was unsure whether it can continue to offer legal services for Wahaha as the case may "compromise the firm's professional obligations."

Danone, which set up a joint venture with Wahaha Group in 1996, alleged in the suit that Hangzhou-based Hongsheng Beverage is selling Wahaha-branded beverages without license, and that the drinks are the same as the product made by its joint venture with Wahaha Group. Hongsheng is a subsidiary of Wahaha Group. Danone sought more than US$100 million for the alleged illegal sales.