Class Action Suit Accusing Southern-Glazers of Unfair Business Practices Dismissed

Sep 13, 2018

(WB) - A federal judge in San Jose has dismissed a class-action lawsuit against Southern Glazer’s Wine and Spirits LLC, the nation’s largest wine distributor, according to court records.

U.S. District Judge Lucy Koh on Monday tossed out the complaint restaurant owners and others filed against the nation’s largest wine distributor for alleged unfair business practices and fraud, according to court filings. 

Among other allegations, the plaintiffs alleged the distributor charged clients for alcohol they did not want to buy, exposing them to tax liabilities, according to the plaintiffs’ filings.

The initial complaint filed in 2017 had been amended three times. The court dismissed the third amended complaint with prejudice, which means the plaintiffs were not allowed to file a new complaint, according to the court order.

Arena Restaurant and Lounge LLC of San Jose in July 2017 filed the initial complaint. The complaint also accused Southern Glazer’s Wine and Spirits of sharing account information with third-parties, knowing these entities would charge alcohol to the retailers’ accounts without authorization, according to court documents.

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