The second-largest auto company in the world was sued by the U.S. Justice Department after it allegedly violated the Clean Air Act by installing illegal emissions devices on nearly 600,000 diesel cars.

When Brooklyn Law School gave Diesel permission to shoot an ad in their library, they thought it would promote the virtues of learning or something. Instead, a bunch of models in their underwear rubbed themselves all over everything.

The Cannes Advertising Festival—the ad industry's "biggest annual autoerotic event"—has given a "Grand Prix" award to Diesel's nonsensical, brain-assaulting, poor-excuse-for-porn "Be Stupid" ad campaign. You people are stupid. [Ad Age]

It wouldn't be a Fashion Week without a bit of drama, and nothing says drama like a good, old-fashioned fight. Plenty of people are squaring off, but there can only be one victor. Who will walk away champion?

The names of Marc Dreier's victims were released by a judge yesterday. Three hedge funds—Elliot Associates, Fortress Investment Group, and Eric Mindich's Eton Park Management—were at the top of the list of investors who were defrauded by the imprisoned lawyer. But a bunch of fashion/retail companies were swindled, too, including Nike, Adidas, Diesel USA, Tommy Hilfiger, and COOGI Partners, the company that controls Fubu and Heatherette. Let it be said, however, that Hilfiger and Heatherette founder Richie Rich almost certainly had nothing to do with the homeless look Dreier was rocking in the days after he was arrested. Men who commit financial crimes just have a tendency to commit fashion ones, too, that's all. [Crain's]

• Topshop is offering free bike rentals beginning this Saturday, strangely. [SF]
• Jimmy Choo is the latest brand to climb into bed with H&M. [WWD, SW]
• Helena Christensen is designing a linens line, apparently. [Cut]
• Sophia Kokosalaki is taking over Diesel's Black Gold line. [Vogue UK]
• Is Vera Wang really going to be on Dancing With the Stars? Maybe! [Cut]
• Simon Doonan on the state of things: "Fashion is currently going through a John the Baptist hair-shirt kind of period. Self-indulgence has been replaced by self-flagellation. All I can say is, 'Stop it, girls! Stop it before it's too late.'" [NYO]

A recap of the shows, parties, and gossip you've missed at Fashion Week thus far after the jump.

The huge new Diesel flagship on Fifth and 54th Street opened today. Can we interest you in "over 700 different denim styles," all at totally exorbitant prices? Too bad. Anyway, if you happen to pass by the location and you're wondering why on earth there are real, live human beings chewing on tuna in the store window, rest assured it's intentional. The company asked various "New York personalities" to eat a "full, real dinner" inside of the main window every night through Friday. Richie Rich, Lady Bunny, Patrick McDonald and Kenny Kenny were there last night; future guests include headband-wearing socialite Arden Wohl and socialite/"artist" Hope Atherton. "It's a rare chance to get to watch socialites eat," Racked writes. Indeed! [Racked]

• Unsurprisingly, Jason Wu's show was a big hit today, and Anna herself made an appearance. [WSJ, NYM, WWD]
• Reports from Charlotte Ronson's show. [WWD, WWD, NYM, Racked]
• Reports from Yigal Azrouël's show. [WWD, NYM, Fashionologie]
• Fashion Week's official coffee, brought to you by McDonald's, is "actually not that bad." [Racked]
• Photos from Rachel Roy's fall collection. [Pipeline]
• Topshop has been delayed again; it's now scheduled for April. [WWD]
• Ally Hilfiger is planning to launch her own line. [NYO]
• Christian Siriano is covering Fashion Week for Time. [Time]
• Shoshanna will appear in the Judith Ripka's new ad campaign. [FWD]
• Diesel's Fifth Ave flagship opens next week. [FWD, Racked]

Click to viewBoomp3.com Popular movie star Lindsay Lohan was all smiles as she made her way into a Diesel Party in New York City over the weekend. When asked why she was so excited, Lohan admitted that she couldn’t believe she was attending the event with her personal style icon, Cory Kennedy. Kennedy mumbled something about being equally excited about hanging out with the beaming Lohan. Lohan hoped that the mutual apperance together would lead to bigger and better things such as a stock market upswing and Kennedy’s endorsement of Lohan’s leggings line. Lohan said, “It means a lot to get Cory’s endorsement on a product and hopefully, at the end of the night, she’ll sign off.” [Photo Credit: Flynet] *A Call To The Bullpen is a work of fiction. Although the pictures we use are most certainly real, Defamer does not purport that any of the incidents or quotations you see in this piece actually happened. Lighten up, people ... it's a joke.

Rumors have been circulating that singer M.I.A. had canceled her summer tour because she's pregnant with fiance Benjamin Brewer's baby. Well, here she is at Saturday night's Diesel concert at Pier 3 in Brooklyn. Congrats superbaby! [BrooklynVegan]