Beverage distribution company sued for allegedly selling counterfeit Coca-Cola products

By Max Schramel | Apr 17, 2015

NEW ORLEANS – A beverage distributor is being by several bars for allegedly selling them counterfeit Coca-Cola products from 2005 to 2014.

Fat Catz Music Club Inc., Fat Catz, Funky 544 LLC, Parsa Inc., Industry Bar & Kitchen, Lower Decatur Entertainment LLC, Balcony Music Club, Bourbon at Toulouse LLC, Old Opera House, MBS Management LLC, Famous Door, Bourbon Nighttime LLC, Krazy Korne, Promenade Entertainment LLC and Bourbon Bandstand filed suit against Fountain Services of Louisiana Inc. and Jerry Schiffman in the Orleans Parish Civil District Court on Feb. 24.

In 2005, the petitioners reached a contractual agreement with the defendant, Fountain Services of Louisiana, Inc. to supply fountain soda syrup to the plaintiffs in five gallon “bags in boxes."

Schiffman, the sole manager and owner of Fountain Services of Louisiana Inc., allegedly promised the petitioners that Fountain Services of Louisiana Inc. was a licensed and registered distributor of Coca-Cola products. The plaintiff claims these promises were made prior to the petitioners agreeing to the contract.

In March 2014, the Food and Drug Administration informed the plaintiffs that the defendants were selling counterfeit products including, “non-licensed, counterfeit Coca-Cola product.” Furthermore, the petitioners say they became aware that the defendants were also shortchanging them on the bag of boxes sold, selling the plaintiffs four gallon bags instead of five gallon ones.

The petitioners contend that over the last nine years the defendants, Fountain Services of Louisiana Inc. and Schiffman, have breached their contractual agreement by selling fewer bags than promised and committed fraud by selling counterfeit Coca-Cola products.

The plaintiffs are represented by W. Patrick Klotz of Klotz & Early.

The case has been assigned to Div. L Chief Judge Kern A. Reese.

Case no. 2015-01681.

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