Trendsettah USA Inc wins $10.8M in Fees
America ı By Rihem Akkouche
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In a high-stakes drama unfolding within the corridors of justice, a California federal court has ruled in favor of Trendsettah USA Inc., a maverick in the cigarillo industry, bestowing upon them a colossal sum of nearly $11 million. This sum comprises a staggering $10,237,493 in attorney fees and an additional $613,181 in distributions, marking a significant milestone in their protracted antitrust and breach of contract suit against their Floridian adversary, Swisher International Inc.
A Labyrinthine Legal Journey
The saga, resembling a legal odyssey, spanned over a decade and saw numerous dramatic twists. It encompassed multiple verdicts, dual voyages through the Ninth Circuit's appellate labyrinth, and an indictment that ensnared Trendsettah's chief executive, adding a layer of intrigue to this already complex narrative. U.S. District Judge James V. Selna, a central figure in this legal drama, highlighted the journey's complexity, noting the repetitive cycle of judgments, appeals, and reinstatements surrounding the breach of contract claims.
Trendsettah USA Inc wins $10.8M in Fees : Contract and Antitrust
Initially, Trendsettah, the David in this Goliath tale, took on Swisher in 2014, accusing the tobacco titan of orchestrating a cunning plot to crush Trendsettah's supply of cigarillos. The allegation was that Swisher, leveraging its market dominance, coerced Trendsettah into a supply contract, only to later renege on the deal, a move akin to a chess grandmaster toppling a pivotal piece.
The initial victory came in 2016 when Trendsettah secured a $14.8 million jury award in the antitrust suit, which ballooned to a breathtaking $44 million after trebling, coupled with $9.1 million for the breach of contract claim. However, this victory was short-lived as Judge Selna, citing improper jury instructions, dismissed the antitrust portion and called for a new trial, throwing a curveball into the proceedings.
Trendsettah USA Inc wins $10.8M in Fees: Appeals and Indictments
In a dramatic turn, rather than opting for a new trial, Swisher pursued summary judgment. In December 2016, Judge Selna's gavel fell, granting judgment for Trendsettah on the breach of contract claims while favoring Swisher on the antitrust and all other claims.
The plot thickened in 2019 when federal prosecutors charged Trendsettah's founder and CEO, Akrum Alrahib, with conspiracy, alleging price manipulation in cigarillo imports. His subsequent guilty plea in November 2021 added a scandalous hue to the narrative.
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