09.28.2017  
 

WTSO agrees to settle in class-action lawsuit

San Rafael, Calif.—The owners of the website Wines Til Sold Out have agreed to pay nearly $13 million in a settlement that will end a class-action lawsuit without admitting to any wrongdoing.

A joint motion for settlement was filed by attorneys on both sides June 28.

The initial lawsuit (Covered by Wines & Vines in Jan. 9, 2017 report Wines Til Sold Out in Legal Fight) was filed in March 2016 and contended WTSO’s discount prices were deceptive because the suggested retail prices were not accurate or valid since some wines had been produced for the website by private-label wine companies. WTSO denied any wrongdoing and stood by all of its discounted prices.

Known as flash websites, web retailers like WTSO sell wines at a discount for a short period of time.

According to the settlement motion filed in the U.S. District Court of New Jersey, WTSO agrees to pay credits on wine purchases through the website for any class members who bought certain wines sold between March 15, 2010, and Nov. 1, 2016. The credits vary based on the offers by WTSO and range from 20 cents to $2. The value of all the credits is approximately $10.8 million, are good for one year and can be used in increments of $2 per bottle. The settlement also calls for $1.8 million in attorneys’ fees and $2,500 per class member for their assistance in the litigation.

WTSO’s attorneys had sought to get the case dismissed, but in December 2016, U.S. District Judge Renée Marie Bumb ruled that the plaintiffs’ case had sufficient standing to proceed. In January the attorneys began negotiations for a settlement to avoid further litigation.

The settlement is described as a “compromise” and comes with no admission of liability “or of any wrongdoing.” All parties in the lawsuit also agreed not to comment publicly on the lawsuit or settlement aside from a mutually agreed-upon statement.

The Wine Industry Insight website first reported on the settlement filing Sept. 27.
 

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