Fraud Lawsuits Against California Wine Company
Several fraud lawsuits against California wine company, Premier Cru, were put on hold recently after the company filed bankruptcy. Consumers filed the fraud lawsuits against the California wine merchant after paying for expensive wines, but the company failed to deliver the product.
As reported by WineSpectator.com, thePremier Cru entity filed bankruptcy after racking up an alleged $70 million in liabilities, including debts to about 9,000 customers (who didn’t receive the wine they paid for). It’s unclear from the WineSpectator article whether the 2 individuals operating the wine enterprise also filed bankruptcy. It’s also unclear whether any of the fraud lawsuits name the 2 individuals.
As one lawyer in article points out, if the owners knew the company was behind $70 million, and/or could not deliver the ordered wines, they should be held responsible (and, thus, named in the fraud lawsuits). California law does not allow individuals to hide behind the corporate shield when are involved or sanction fraud, even when “in the name of the company.” California companies should not advertise product — and accept payment – when they’re unable to fill orders or about to file bankruptcy. In this instance, assuming the allegations are true, it further raises the question of where the customers’ money for the missing/undelivered wines went?
For more information on fraud lawsuits in California, contact our San Diego fraud lawyers on the contact us page, or call 619-535-5151.