Key facts
- A federal judge dismissed Sherry-Lehmann's lawsuit accusing a New York Times reporter and its former CEO of a smear campaign.
- The judge found no evidence that the reporter and former CEO shared a common purpose in disparaging the business.
- Sherry-Lehmann's lawyers withdrew from the case due to non-payment.
- The company faced numerous customer complaints about undelivered wine and unreturned funds.
- A landlord won a $5.8 million default judgment against Sherry-Lehmann for unpaid rent.
A federal judge on Tuesday dismissed a lawsuit filed by Sherry-Lehmann, once a prominent New York wine seller, which accused New York Times reporter James Stewart and former Chief Executive Michael Aaron of orchestrating a smear campaign that contributed to the company's demise in 2023. US District Judge Andrew Carter in Manhattan ruled that Sherry-Lehmann could not pursue its racketeering claim because it failed to allege that Stewart and Aaron shared a common purpose in disparaging the business.
Sherry-Lehmann had claimed that Aaron sought to avoid his rent obligations while Stewart aimed to win a Pulitzer Prize by presenting false information to investigators, wholesalers, customers, and readers. The company's lawyers also withdrew from the case, citing non-payment. A state law claim that Aaron breached his separation agreement was also dismissed.
Sherry-Lehmann, co-founded in 1934, was once synonymous with fine wine in New York, introducing Americans to Dom Perignon champagne and also engaging in a large business of wine futures. However, the company faced numerous customer complaints, with reports indicating failures to deliver paid-for wine, including futures, and issues with stored wine. The Times also reported that Sherry-Lehmann often failed to pay distributors and resisted offering refunds.
New York state's liquor authority closed Sherry-Lehmann's store in March 2023 after its liquor license expired. The company's landlord subsequently filed an eviction lawsuit for unpaid rent and secured a $5.8 million default judgment. The landlord is now suing Aaron and his successor, Chris Adams, to honor their alleged rent guarantees.