Once-iconic NYC wine seller Sherry-Lehmann loses lawsuit over alleged smear campaign

A federal judge in New York dismissed a lawsuit brought by Sherry-Lehmann, the iconic wine seller, over allegations of a smear campaign. The lawsuit, filed by the company, accused former Chief Executive Michael Aaron and New York Times reporter James Stewart of orchestrating the campaign after the company's demise in 2023. However, US District Judge Andrew Carter ruled that Sherry-Lehmann could not pursue a racketeering claim as they did not allege that Stewart and Aaron had a shared purpose in creating clickbait stories by disparaging the company.

The judge also dismissed a state law-based claim that Aaron breached his separation agreement. Sherry-Lehmann, once synonymous with fine wine in New York, introduced Americans to Dom Perignon champagne in 1947 and supported Georges Duboeuf's Beaujolais Nouveau. The company faced allegations of failing to deliver wine to customers, not paying distributors, selling stored wine to other customers, and resisting refunds.

New York state's liquor authority closed Sherry-Lehmann's Manhattan store in March 2023 due to unpaid rent, leading to a $5.8 million default judgment against the company.