A week ago, the brand had filed a lawsuit in New York State Supreme Court in Manhattan seeking at least US$25 million in damages, alleging that production company North Six Inc. and set designer Nicholas Des Jardins used documents related to a child-pornography case in photos in the ad campaign without permission.

Balenciaga’s artistic director has also since apologised for the shocking promotional campaign that drew criticism that it sexualised children.

Demna, as the designer at the Kering SA fashion brand is known, said he was sorry for the “wrong artistic choice” behind a gifting campaign that included child models holding teddy bears clad in what appeared to be bondage gear.

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“It was inappropriate to have kids promote objects that had nothing to do with them,” he wrote on his official Instagram account Friday.

Balenciaga said earlier this week it was taking measures to boost oversight of projects, without providing details.

Demna said he’ll engage with child protection organisations to “help on this terrible subject”.

Balenciaga named Demna artistic director in 2015. Under his creative leadership, the brand’s popularity soared as it launched trainers such as the Triple S, which are recognisable by their exaggerated size.