Case Background
The Plaintiffs, Red Rock Sourcing LLC and Coronado Distributing LLC, brought this legal action against JGX, LLC and several other Defendants for allegedly running a fraudulent scheme during the COVID-19 pandemic. The Plaintiffs, who already established a brand called "URBANE BATH & BODY," claimed that the Defendants had manufactured and sold counterfeit hand sanitizer using their brand names and logos.
Cause
The legal dispute began when the Defendants allegedly misappropriated the Plaintiffs' brand to sell unauthorized hand sanitizer. These actions led to a shipment being stopped at the border and placed on an FDA safety list.
Injury
The Plaintiffs argued that their brand's reputation suffered permanent damage because of its association with the FDA's safety warnings. They stated that their business opportunities vanished and that the public now viewed their brand as potentially dangerous.
Damages Sought
The Plaintiffs asked the Court for triple the amount of their actual financial losses. They also requested that the Defendants pay for their legal fees and stop using the trademarks.
Key Arguments and Proceedings
Legal Representation
Plaintiff(s): Red Rock Sourcing LLC | Coronado Distributing LLC
· Counsel for Plaintiff(s): Daniel A. Schnapp | Andrew H. Winetroub | Daniel Joseph Hurteau | Erin Huntington | Michele Di Franco | On Lu
· Experts for Plaintiff: Justin Lewis
Defendant(s): JGX, LLC, Triple Five Worldwide, LLC, Jack Grazi, Nouri Jaradeh, Isaac Saba, Eliezer Berkowitz, and David Ghermezian
· Counsel for Defendant(s): Ariel Reinitz | Yvette Janelle Sutton | Martin Stein | Harlan Mitchell Lazarus
Key Arguments or Remarks by Counsel
The Plaintiffs' legal team argued that the Defendants exploited public fear during the pandemic to make a profit. They claimed the Defendants knowingly sold counterfeit goods that were eventually flagged by the FDA.
JGX, LLC's counsel responded by denying most of the claims and argued that they did not have enough information to confirm the Plaintiffs' business history or trademark ownership. They maintained that they were not liable for any of the alleged harm.
Claims
The Plaintiffs brought several legal claims against the Defendants, including violations of federal racketeering laws (RICO), trademark infringement under the Lanham Act, and unfair competition. They also alleged that the Defendants engaged in deceptive business practices and interfered with their future business deals.
Defense
The Defendants fought back by stating they were not responsible for any wrongdoing. They questioned the validity of the Plaintiffs' claims and requested a jury trial to decide the outcome.
Jury Verdict
On February 12, 2026, the jury reached its final decision after hearing the evidence.
Liability for Trademark Use
The jury found that Nouri Jaradeh , Isaac Saba , and Eliezer Berkowitz used the infringing logo in commerce.
Liability for False Designation of Origin
The jury also decided that the Plaintiffs proved the Defendants were liable for the infringement.
Damages Awarded
The jury determined that the Plaintiffs collectively suffered a total of $1,460,000.00 in damages as a result of the infringement by the liable Defendants. The jury found that these total damages were a single, indivisible injury caused by all the Defendants who engaged in the infringement. Consequently, the jury did not apportion the damages differently between Red Rock Sourcing, LLC and Coronado Distributing LLC.
Court documents are available upon request at [email protected]
