U.S. Federal Court Upholds AHMA Suit Jan 12, 2005

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According to the American Hardware Manufacturers Association (AHMA), the U.S. Federal Court in Chicago, IL, U.S. recently denied a request from Reed Exhibitions and Freeman Decorating Company to throw out a lawsuit filed by AHMA.

AHMA says that on Dec. 28, 2004, the U.S. District Court for the Northern District of Illinois issued an opinion in the lawsuit filed by the AHMA against Reed and Freeman Decorating sustaining 13 claims against Reed, including counts for fraud, civil conspiracy, and financial accounting. In addition, the association says the Federal Court also upheld AHMA's claim against Freeman Decorating for civil conspiracy.

The lawsuit alleges that Reed conspired with Freeman Decorating to improperly shift costs to AHMA members and other exhibitors of the Hardware Show and alleges that Reed accepted improper kickbacks from Freeman Decorating to the detriment of AHMA members and other exhibitors of the Hardware Show.

The ruling allows that the lawsuit, which seeks damages in excess of U.S. $100 million, move into the discovery phase, according to AHMA.

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