The years-long legal battle between members of the Sheehan family over their eponymous multi-state distributor officially ended today in Massachusetts Superior Court when all parties agreed to dismiss the case with prejudice.
“[A]ll parties to this action, by and through their undersigned counsel, hereby voluntarily dismiss with prejudice all claims, cross-claims and counterclaims asserted by the parties in this action,” the filing read. “The parties also waive all rights of appeal. Subject to pre-existing indemnities, as to which no disgorgement or repayment shall be sought, each party shall bear his, her or its own respective attorneys’ fees, costs and expenses in this matter.”
In addition to the lawsuit’s dismissal, the sale of the business to Timothy, John, Christopher and Mathew Sheehan from other family members closed on Friday, May 31, Beer Marketer’s Insights reported. A deal to “consolidate ownership” and end the lawsuit was first reached in February.
To prepare for the sale, Sheehan Family Companies, which primarily sells the Anheuser-Busch InBev portfolio and craft offerings, sold off operations in many states. The branches that were shed include Craft Connecticut, Craft Vermont, Craft New Hampshire, Craft Rhode Island and Craft Maine, as well as Hunterdon in New Jersey, Legends Distributing in Maryland and Washington, D.C., and its St. Killian Importing portfolio.
The remaining branches listed on the company’s website include Craft Massachusetts, L. Knife & Son and Seaboard Products in Massachusetts; Craft New York, T.J. Sheehan Distributing, Tri-Valley Beverage and Union Beer Distributors in New York; Specialty Beverage in Virginia; and Beechwood Sales & Service in Wisconsin. Sheehan Family Companies also operates Gambrinus Trucking, which has locations in Massachusetts, New York and New Jersey, according to its website.
The drawn-out lawsuit and eventual sale process began in December 2020, when a trustee representing Tim and John Sheehan filed a lawsuit alleging that the patriarch and matriarch of the family, Gerald (“Jerry”) and Maureen Sheehan, violated their fiduciary duties and misappropriated company funds.
At the time of the lawsuit, only Tim, John and Christopher Sheehan had active roles within the company, and their five siblings did not. To compensate the active siblings, the family created what it called a 60/40 agreement, which gave the active siblings the option to purchase 60% of any new distributors outside Massachusetts and split the remaining 40% into eight equal shares among the other siblings. An active sibling was defined as a full-time company employee who is “willing to relocate as needed to help establish and manage new distributorships,” according to the lawsuit.
The New York and Wisconsin branches, which were included in the sale to the brothers, are subject to the 60/40 agreement, according to the 2020 lawsuit.
Requests for comment from the company as well as lawyers representing family members were unreturned as of presstime.