The FTC had sued to block the merger between the parent companies of Coach and Michael Kors in April|Gunguti Hanchtrag Lauim; Mike Mozart|CC BY-SA 4.0; CC BY 2.0

A federal judge recently granted a preliminary injunction to block the $8.5 billion proposed merger between Coach, Kate Spade, and Stuart Weitzman owner Tapestry and Capri, which is behind luxury brands like Versace, Michael Kors and Jimmy Choo. In April, the Federal Trade Commission (FTC) sued to block the merger.

The FTC had argued that the merger would reduce competition, raise handbag prices, and possibly lower wages. Tapestry argued that the acquisition would improve competition by delivering better products more quickly.

While Tapestry’s stock rose 10% after the decision, Capri’s stock plummeted to around 50%.

Tapestry plans to appeal and may have to pay Capri between $30 million and $50 million if the merger is ultimately blocked.

Capri would owe $240 million if it withdraws from the deal.