Cigarillo Maker Swisher Gets $44 Million Antitrust Verdict Axed

Cigarillo producer Swisher International Inc. beat a $44 million antitrust jury verdict won by Trendsettah USA Inc. due to newly discovered evidence that Trendsettah’s CEO engaged in a federal tax fraud scheme, the Ninth Circuit ruled Friday.

Trendsettah alleged it contracted with Swisher to manufacture its own cigarillos called Splitarillo, but instead of competing, Swisher decided to limit the supply of Splitarillos. A jury ruled in Trendsettah’s favor on its antitrust and contract claims, and a lower court awarded it $44.4 million in antitrust damages and reduced the contract damages award to zero by stipulation.

The lower court later ruled ...