Jeremy Scott and Moschino have been sued for copying graffiti artist Joseph 'Rime' Tierney's design.
The elite designer and fashion house could potentially have to pay damages to Joseph after allegedly copying and advertising his artwork on a dress, worn by the 'Roar' hitmaker and also model Gigi Hadid.
According to the Daily Mirror newspaper a court heard: "Rime is a well-known artist. Defendants Moschino and Jeremy Scott - two household names in high fashion - inexplicably placed Rime's art on their highest-profile apparel without his knowledge or consent.
"If this literal misappropriation were not bad enough, Moschino and Jeremy Scott did their own painting over that of the artist - superimposing the Moschino and Jeremy Scott brand names in spray-paint style as if part of the original work."
Katy Perry famously wore the dress to the prestigious Met Gala Ball in May and according to the legal case Katy was paid to "advertise and display" the clothing at the annual fashion show.
Jeremy also had the graffiti sprayed on a Rolls Royce and has been accused of acting as "responsible for the artwork".
The lawsuit heard: "The idea of putting graffiti - or "street" art - on ultra-expensive clothing was meant to provoke and generate publicity for the brand/designer. Towards that end, Defendants paid Ms. Perry to advertise and display the clothing at the Gala, a high-profile party thrown annually by one of the nation's most venerable institutions, the Metropolitan Museum of Art in New York City."
"Not only did Ms. Perry and Defendant Scott advertise, wear, and display the clothing at the event, they arrived at the event in a spray painted Rolls Royce, and even carried around Moschino branded cans of fake spray paint during the event, as if Defendants were responsible for the artwork."
Rime wants the clothing showcasing his art removed from Moschino's AW15 collection and has appealed for damages.
A representative for Jeremy Scott is yet to comment.