Judge Tosses Sherry-Lehmann Lawsuit Alleging Conspiracy Against Defunct Wine Seller

A federal judge on Tuesday dismissed a lawsuit filed by the defunct New York City wine retailer Sherry-Lehmann, which accused its former owners and a New York Times journalist of orchestrating a smear campaign that contributed to the company's collapse. The iconic Park Avenue store closed in 2023 amid numerous customer complaints of undelivered wine.

Sherry-Lehmann had sought to hold New York Times journalist James B. Stewart and several former company CEOs responsible for its demise, alleging they violated the Racketeer Influenced and Corrupt Organizations (RICO) Act. The lawsuit claimed Stewart and the former executives, Chris Adams, Michael Yurch, and previous owner Michael Aaron, engaged in racketeering activity.

US District Judge Andrew Carter, in his ruling in Manhattan, stated that Sherry-Lehmann failed to demonstrate a key element of RICO: that the defendants engaged in racketeering. Prior to the dismissal, Sherry-Lehmann's attorney requested to withdraw from the case due to substantial outstanding legal fees, a request the judge granted, giving the company 30 days to find new representation.

The dismissed suit contended that Stewart, a Pulitzer Prize-winning journalist, authored damaging and false information about Sherry-Lehmann and coordinated a smear campaign with other news outlets, including The Post, and former executives. The suit alleged Stewart's motive was to achieve a Pulitzer Prize for his reporting on the century-old retailer's downfall.

Stewart's May 25, 2023, article, which reported that some wine belonging to storage customers had been illegally sold, was specifically cited. Sherry-Lehmann had denied these allegations in its complaint. The lawsuit further claimed that "corrupt, self-serving journalists," alongside former executives, managers, and employees, aimed to inflict maximum damage on the current owners, Kris Green and Shyda Gilmer. Michael Aaron, whose family founded Sherry-Lehman, along with Yurch and Adams, are also defendants in a separate lawsuit filed by Sherry-Lehmann's landlord, Glorious Sun, over unpaid rent.

In their defense, the three former executives argued they had no involvement with the company during its decline and had severed ties long before. The lawsuit also alleged that negative media attention prompted investigations by law enforcement, including the FBI and US Postal inspectors, leading to raids on the Park Avenue store and its storage facility, Wine Caves, in 2023 and 2024. These raids, Sherry-Lehmann claimed, resulted in canceled orders from customers and potential acquirers.

Stewart, known for his 1991 book "Den of Thieves" and his 1987 Pulitzer Prize for his Wall Street Journal coverage of the stock market crash, declined to comment. Aaron and Adams also did not provide comment, while Stewart and Yurch could not be immediately reached. Attempts to contact Gilmer and Green were unsuccessful.