Epstein Becker Green represented a European dietary supplement company in a fraudulent inducement and unfair competition lawsuit against one of the largest suppliers of food and biochemical products in the United States. The supplier had falsely represented its product to our client, resulting in the loss of significant investment that it had already partially received. Thus, our client was forced to conduct a large product recall and lost all of its sales for the calendar year.
The case included many cutting-edge issues involving different EU regulations governing food safety, whether an arbitration agreement being fraudulently induced eradicated the client’s right to pursue relief in court, and whether purchase orders that were never signed or acknowledged could nevertheless limit the client’s damages to the cost of goods sold.
After we beat back a motion to dismiss and compel arbitration, we engaged in limited discovery and suggested the parties participate in a confidential mediation. Following multiple days of mediation, we reached a confidential settlement that allowed our client to save its business and avoid years of litigation (and millions of dollars in attorney fees) in the United States.
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