Judge Rejects Sherry-Lehmann Racketeering Claim Against CEO, Reporters

A federal judge dismissed a lawsuit in which Sherry-Lehmann, once one of the iconic wine sellers of the U.S. and now in Chapter 11 Bankruptcy Act protection, accused its former CEO, Michael Aaron, and New York Times reporter James Stewart of sharing a common purpose in trying to create "clickbait stories" about its 2023 demise.

The judge dismissed the case, saying Sherry-Lehmann had failed to prove its case. The retailer alleged Aaron was trying to avoid his personal guarantee of its rental obligations and Stewart was seeking a Pulitzer Prize by presenting a false "manifesto of purported wrongdoing" to federal and state ​investigators, wholesalers, customers and readers.

He also permitted Sherry-Lehmann's lawyers to withdraw from the case. They said they had not been paid.

Unlike more recent bankruptcies, Sherry-Lehmann's case resulted from its inability to deliver $1.02 million in wine it had not delivered to its customers.