E&J Gallo Winery is facing a lawsuit over the wine firm’s link to the Pinot Noir wine fraud scandal in France.
Gallo faces a class action lawsuit in its home US state of California, filed by law firm Kingsley & Kingsley.
The suit comes after Gallo said that it may have been duped into buying wine falsely labelled as Pinot Noir from the French wine merchant, Sieur d’Arques.
A spokesperson for Gallo told just-drinks last night (1 March): “It is the policy of the E&J Gallo Winery not to comment on pending legal issues.”
Ringleaders of the French fraud operation were last month given suspended prison sentences and fines by a court in the French city of Carcassonne. Is is estimated the fraudsters made a collective EUR7m by selling cheap wine at inflated prices.
Sieur d’Arques, which has supplied wine for Gallo’s Red Bicyclette brand, was fined EUR180,000 (US$244,000), the largest sum handed down by the court.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData“Based on the available information of the Pinot Noir that the French courts have investigated, Gallo imported less than 20% of the total and is no longer selling any of this wine to customers,” said Gallo, following the ruling.
US authorities have been tracking the scandal, which, alongside Gallo, may also have claimed Constellation Brands as a victim.
Stay informed for just £1! *
Subscribe to Just Drinks for unbiased coverage of the global drinks industry, offering insights into the corporate strategies of beverage manufacturers and brands worldwide.
What’s included in your subscription:
- Unlimited access to Just Drinks content including daily global news, in-depth analysis, and interviews with C-suite executives
- Unbeatable coverage of categories from beer, wine and spirits to soft drinks and hot beverages
- Unrivalled drinks industry comment from leading sector specialists
Ready to stay informed? Subscribe now and gain access to exclusive content.
Have a subscription? Sign in
For further details on subscribing, click here. Need multi-user access? Explore our corporate subscriptions now.
*After your 1-month trial, your subscription will continue at £315 per year.
