Lawsuit Alleging Misconduct by New Glarus Brewing Co. Has Been Dismissed

A devastating lawsuit against New Glarus Brewing Company filed by three of its minority shareholders was dismissed on Friday.

The original suit was filed against the Wisconsin brewery — famous for its Spotted Cow Farmhouse Ale — in August 2021. According to WKOW 27 News, shareholders Karin Eichhoff, Steven Speer and Rod Runyan claimed that the business practices of the brewery’s owner and founder Deb Carey denied them rightfully-earned financial dividends and mishandled company dollars for personal benefit. The lawsuit alleged that Carey was using brand resources to start a distillery attached to New Glarus owned solely by herself and her husband and cofounder Dan Carey. Among other complaints, the lawsuit also claimed that Carey was withholding pertinent information regarding the valuation of company stocks and letting family members buy up shares without signing a shareholder agreement.

The Wisconsin Court of Appeals dismissed the lawsuit this week in light of a written dismissal by Green County Judge Phillipson, siding with the brewery founders. Upon its initial filing, the Careys claimed to be dumbfounded by the allegations.

“Nothing could be further from the truth,” Deb told WKOW 27 News of the suit’s accusations. “My goal is to make world-class beer and take care of our people. If [the shareholders] want to sell their stock, we would be happy to buy it.”

Though the lawsuit has been dismissed, the press surrounding its claims have plagued New Glarus’ image. That said, the brewery has remained hugely profitable, and its success has mainly been attributed to keeping distribution local and supporting its workers Carey echoed this notion in a statement to WKOW 27:

“Everyone else involved, including myself and the brewery, 110 employee-owners, and the remaining stockholders are relieved and excited that we are no longer under threat of a forced sale to some huge corporation that might not have the future of the New Glarus Brewing Company at heart.”

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