French Cheese Giant Savencia Wins Legal Battle in Delaware
French cheese giant Savencia has emerged victorious in a lengthy legal battle against two US corporations, ECB USA and Atlantic Ventures, in the District of Delaware. The legal dispute, which lasted nearly seven years, centered on allegations of fraud and conspiracy related to the sale of Savencia's cheese distribution arm.
In a trial verdict handed down on February 21, 2025, both Savencia and its subsidiary Zausner Foods, now AFP, were acquitted of all charges. The jury dismissed the claims that the companies had engaged in fraudulent activities and had conspired to harm the US claimants during the sale of Schratter Foods, acquired by France-headquartered Savencia over two decades ago to serve as its US distribution arm.
The defendants faced allegations from ECB USA and Atlantic Ventures, who accused Savencia and Zausner of orchestrating a scheme, allegedly known as the “Savencia conspiracy,” to inflict financial damages on them. At trial, the claimants sought $27.9 million in compensatory damages along with punitive damages, while Zausner counterclaimed for unpaid purchase price and other breaches, seeking $6.1 million.
The jury found insufficient evidence to substantiate the fraud accusations against Savencia and Zausner, leading to a ruling in favor of the defendants, who were consequently awarded $6.1 million. The legal counsel representing Savencia included Morgan, Lewis & Bockius led by Troy Brown, while the claimants were represented by Marko & Magolnick.
While ECB USA and Atlantic Ventures have not commented on the ruling, Savencia's legal victory illustrates the complexities of cross-border corporate litigation and underlines the challenges faced by companies in safeguarding their international operations and reputations.
