Jan 12, 2016

Judge orders competitor to pay LidoChem $44.5M

LidoChem, parent company of Performance Nutrition – a developer and supplier of crop protection products, fertilizer additives and soil amendments for agriculture – was awarded $44.5 million against Stoller Enterprises in a Michigan court on Jan. 5, according to a Performance Nutrition press release.

The final judgment, written by Judge Robert Jonker of the U.S. District Court Western District of Michigan, Southern Division, was entered in favor of the plaintiff LidoChem and against defendants Jerry Stoller, Stoller Enterprises and David Alexander on all claims except injurious falsehood. Judgment was entered against LidoChem and in favor of all named defendants as to LidoChem’s claim of injurious falsehood. Judgment also was entered in favor of defendants Michael Wright and McKenzie Wright Laboratories on all claims, according to the judgment.

The decision comes nearly two years after a jury found that Stoller Enterprises’ Jerry Stoller and David Alexander willfully violated the Lanham Act, which protects consumers and companies from false claims. The court found that Stoller set out on a mission to knock out LidoChem, a competitor, by spreading false information – even to the point of concocting a false lab report, according to the press release.

“We had substantial evidence that Stoller and its executives were intentionally spreading falsehoods about LidoChem and its Performance Nutrition products over a 10- year period that ultimately interfered with LidoChem’s business relationships, resulting in a substantial impact on the company and its brand,” said William D. Howard, lead attorney for LidoChem.

Stoller Enterprises did not respond to requests for comment.