Once-iconic NYC wine seller Sherry-Lehmann loses lawsuit over alleged smear campaign
NYT•A federal judge dismissed Sherry-Lehmann’s lawsuit accusing a former CEO and a reporter of orchestrating a smear campaign over the wine seller’s 2023 closure. The judge also dismissed a claim that the former CEO breached his separation agreement.
1. Lawsuit dismissed
U.S. District Judge Andrew Carter dismissed Sherry-Lehmann’s racketeering claim, saying the company had not alleged that former CEO Michael Aaron and the reporter shared a common purpose to disparage its business. Carter also dismissed a state law-based claim that Aaron breached his separation agreement.
2. Company’s claims
Sherry-Lehmann alleged Aaron sought to avoid a guarantee of its rent obligations, while the reporter sought a Pulitzer Prize by presenting a false account of alleged wrongdoing to investigators, wholesalers, customers and readers. Aaron’s lawyer said his client was pleased with the ruling and saddened by what had happened to the business.
3. Closure and rent dispute
Founded in 1934, Sherry-Lehmann introduced Americans to Dom Perignon in 1947 and operated a wine futures business. New York state’s liquor authority closed its Manhattan store in March 2023 after its liquor license expired. Its landlord won a $5.8 million default judgment for unpaid rent and is suing Aaron and his successor, Chris Adams, over alleged rent guarantees.
