On July 5, a class action lawsuit was filed against Southern Glazer’s Wine and Spirits (SGWS) in U.S. District Court in California alleging fraud, unfair competition and numerous violations of federal and state alcohol distribution laws.The suit was filed on behalf of James Nguyen, previously a liquor license holder for Arena Restaurant and Lounge in San Jose, California. It alleges that SGWS provided account and liquor license numbers of customers like Nguyen to third parties, who then used the information to illegally purchase alcohol and, in turn, create tax liabilities and jeopardize liquor licenses for Nguyen and others.

Among other things, the complaint accuses Southern Glazer’s of allowing its employees to use customers’ account and liquor license numbers to illegally sell alcohol to businesses without liquor licenses. It also says SGWS permitted employees to purchase liquor on customers’ accounts in order to meet sales quotas, and also falsified sales documentation to avoid scrutiny.

The plaintiff’s lead attorney, Scott Edward Cole, claimed that Southern Glazer’s clients were charged for liquor they never purchased, and that Southern Glazer’s was aware of the situation. The plaintiff seeks damages, restitution, and the discontinuation of the alleged business practices. The lawsuit claims to extend to “all entities or persons who maintained an open account with Southern Glazer’s during, at least, the last four years.” A spokesperson for Southern Glazer’s told SND “it is premature for us to comment at this time.”—Shane English