Lawyer Behind Starbucks Labeling Challenge Gets Sanctions Lifted

Class action attorney Spencer Sheehan escaped a contempt order and sanctions after the Second Circuit ruled that a federal judge abused his discretion when issuing the decision.

Sheehan didn’t act in bad faith, the US Court of Appeals for the Second Circuit ruled Tuesday, reversing his $500 fine for violating Federal Rule of Civil Procedure 11(b). The rule mandates that lawyers’ “factual contentions have evidentiary support” when making representations to the court.

Judge Frederick J. Scullin Jr. of the US District Court for the Northern District of New York held Sheehan in civil contempt four months after scolding him for ...