Federal Judge Dismissed Sherry-Lehmann Lawsuit
The court dismissed racketeering claims against a reporter and a former CEO amid the closure of the iconic wine store.
Updated on Sept. 29, 2026 in Openings & Closings
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A federal judge in New York dismissed a lawsuit brought by Sherry-Lehmann against reporter James Stewart and former CEO Michael Aaron. The case alleged that the defendants orchestrated a smear campaign to avoid rent obligations and win professional recognition.
Why it matters
The dismissal marks another legal hurdle for the wine retailer, which was shuttered by state authorities following millions of dollars in unpaid rent debt. The company's legal representation also withdrew from the proceedings citing non-payment of fees.
The retailer faces a $5.8 million default judgment for unpaid rent awarded to its landlord. This follows the state-mandated closure of the company's Park Avenue storefront in March 2023.
The players
Andrew Carter
He is the US District Judge who presided over the case and ultimately dismissed the racketeering claims.
James Stewart
He is a reporter who was accused by Sherry-Lehmann of orchestrating a smear campaign.
Michael Aaron
He is the former CEO of Sherry-Lehmann who was named as a defendant in the retailer's lawsuit.
Sherry-Lehmann
It is a historic wine retailer that was co-founded in 1934 and operated a storefront on Park Avenue.
The details
US District Judge Andrew Carter ruled that Sherry-Lehmann failed to demonstrate that the defendants shared a common purpose in their alleged smear campaign. The company had claimed the former CEO sought to evade rent guarantees while the journalist aimed to secure a Pulitzer Prize.
Timeline
1934: Sherry-Lehmann was co-founded.
1947: The company introduced Americans to Dom Perignon.
March 2023: New York state authorities closed the Manhattan store.
September 22, 2026: A federal judge dismissed the lawsuit.
Market Landscape
The dismissal of this lawsuit follows the pattern set by the 2023 closure of Sherry-Lehmann by New York state authorities. It illustrates the continued dissolution of a once-prominent Manhattan business as it deals with significant outstanding financial liabilities.
The closure of the landmark wine shop significantly reduces retail options for high-end spirits in the Park Avenue area. Customers holding outstanding orders or account credits should monitor legal proceedings regarding potential asset liquidation.
The takeaway
The dismissal of this case highlights the difficulty businesses face when attempting to litigate while under significant financial distress and facing eviction. It serves as a reminder that legal challenges often fail to reverse the collapse of a company when core financial obligations remain unmet.
Further reading
For more on the retail environment, see New York City Openings & Closings.
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