Millionaire Lawsuit Against Swisher

Trendsettah USA had filed suit against Swisher, the world’s largest cigar maker, accusing the company of unfair business practices.

According to the lawsuit, the two companies entered a contract in 2011 under which Swisher would make cigarillos, a small cigar, which Trendsettah would sell under the name Splitarillos.

Swisher’s 16th Street factory in Jacksonville is the world’s largest cigar maker, producing 1.6 billion a year, said Mark Poe, who represented Trendsettah for San Francisco-based law firm Gaw|Poe.

Splitarillos are identical to Swisher’s own Swisher Sweets, Poe said.

“They were produced on the same machines, but with different packaging,” he said. “The catch was that we sold them three for 99 cents while Swisher typically sold them two for 99.”

Trendsettah claimed that sales increased rapidly, taking market share from Swisher Sweets. There was no maximum amount of cigars on the contract for the first two years, he said.

“It’s called a ‘requirement contract,’” he said. “The supplier has to provide as much as the buyer orders.” Read More