Judge Dismissed Sherry-Lehmann Lawsuit
The ruling marks the end of the retailer's legal battle against a former executive and reporter.
Updated on Sept. 29, 2026 in Openings & Closings
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A federal judge dismissed a racketeering and breach-of-contract lawsuit filed by the shuttered wine retailer Sherry-Lehmann. The case targeted former CEO Michael Aaron and reporter James Stewart.
Why it matters
The dismissal follows the collapse of the historic retailer, which saw its Manhattan storefront seized by state authorities in 2023 amid mounting financial liabilities. The legal fallout highlights the operational risks inherent in high-stakes litigation during insolvency.
The court dismissed the claim following a $5.8 million default judgment for unpaid rent secured by the landlord. The company, co-founded in 1934, previously operated its flagship site on Park Avenue before state authorities closed it.
The players
Sherry-Lehmann
A historic New York wine retailer that specialized in luxury spirits before ceasing operations.
Michael Aaron
The former CEO of Sherry-Lehmann who was accused by the company of breaching a separation agreement.
James Stewart
A reporter who was accused by the firm of orchestrating a smear campaign to influence his writing.
Andrew Carter
A US District Judge presiding over the federal court proceedings in Manhattan.
The details
Judge Andrew Carter dismissed the racketeering claims after ruling the retailer failed to show the defendants acted with a shared purpose. The proceedings concluded shortly after the company's own legal counsel successfully moved to withdraw from the case citing non-payment of fees.
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 follows the pattern set by the 2023 seizure of the Sherry-Lehmann Park Avenue storefront, which marked the effective end of the company's retail footprint. The ruling effectively closes a chapter on the long-standing retailer's high-profile exit from the New York market.
Business owners should ensure that legal retainers and separation agreements are structured to withstand insolvency proceedings. When facing substantial rent defaults, companies must prepare for the high likelihood of aggressive landlord litigation and professional service withdrawals.
The takeaway
The case underscores the volatility of disputes during a business's final wind-down phase. Operators should review their own liability protections and ensure legal counsel is sufficiently funded to navigate periods of extreme financial distress.
Further reading
For more on local retail shifts, visit Openings & Closings.
Source note: This article includes information reported by U.S. News & World Report.
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