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CT Law Tribune Highlights Firm's Representation of CVS in Breach of Contract Case

"Shipman & Goodwin Goes to Bat for CVS in Breach of Contract Fight"

Connecticut Law Tribune

December 21, 2017

Shipman & Goodwin is representing pharmacy giant CVS in a Connecticut breach of contract case against a vitamin maker that allegedly failed to buy back unsold products.

Shipman & Goodwin’s Andrew Zeitlin, who works out of the firm’s Stamford offices, is representing Rhode Island-based CVS against Hero Nutritionals LLC.  CVS claims in a lawsuit filed Wednesday in U.S. district court that Hero Nutritionals, whose products include Yummi Bears multi-vitamins, owes at least $631,942 after failing to buy back unsold products as required under their contract.

The lawsuit does not identify the products in question, and Zeitlin did not respond to a request for comment.

According to the complaint, CVS agreed to purchase certain Hero Nutritionals products in 2014 and resell them in more than 9,000 stores. If CVS elected to discontinue the sale of the products, Hero Nutritionals agreed it would purchase the unsold merchandise.

CVS claims it repeatedly asked Hero Nutritionals for a return authorization number in order to sell back the unsold products.

“Hero Nutritionals failed and refused to provide a return authorization number, making it impossible for CVS to return the unsold product to defendant,” the lawsuit states. “Further, Hero Nutritionals failed to complete the re-purchase of its unsold products by paying CVS for those products.”

CVS claimed it wouldn’t have agreed to purchase and sell Hero Nutritionals’ products if if did not agree to buy back the unsold items.

CVS cites two claims: breach of contract and promissory estoppel.

Santa Ana-California-based Hero Nutritionals did not respond to a request for comment.

The case will be heard in front of U.S. District Judge Alfred Covello of the District of Connecticut.

The full article is also available here.

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