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Selling products to U.S. consumers through online platforms offers global reach, but it also exposes foreign businesses to unexpected legal risks. One growing threat is the rise of Schedule A lawsuits, where U.S. companies file mass intellectual property claims against hundreds of international sellers at once. These cases can lead to frozen accounts, blocked sales, and significant financial losses before defendants even know they’ve been sued. Knowing how these lawsuits work and how to respond quickly can make all the difference in protecting your business.
What Is a Schedule A Case?
A Schedule A case is a type of intellectual property lawsuit often filed by U.S. brand owners against multiple sellers, often foreign entities, at once. The “Schedule A” refers to the list of defendants attached to the complaint, which can include hundreds of online store names.
Typically filed under seal, these cases aim to stop alleged counterfeit sales quickly. Plaintiffs often request temporary restraining orders (TROs) that freeze the defendants’ marketplace and payment processor accounts, sometimes before the sellers are even notified of the lawsuit.
Common Allegations in Schedule A Complaints
- Trademark infringement or counterfeiting
- Copyright infringement involving product images or listings
- False designation of origin under the Lanham Act
- Unfair competition or deceptive trade practices
Why Foreign Sellers Are Especially Vulnerable
Many Schedule A defendants are small or midsize overseas businesses that rely heavily on online platforms such as Amazon, eBay, Etsy, or Shopify. These sellers often have limited familiarity with U.S. law and may not realize that failing to respond quickly can result in a default judgment and permanent loss of funds.
Because the cases are filed under seal, sellers frequently learn about them only after their accounts or assets are frozen by payment processors like PayPal or Amazon. The speed and scope of these injunctions can disrupt business operations immediately.
Legal and Financial Risks of Schedule A Lawsuits
Schedule A cases can be costly and complex for foreign businesses. The risks include:
- Frozen funds: Courts often grant TROs that freeze all funds connected to allegedly infringing accounts.
- Default judgment: If you fail to respond, a default judgment may permanently bar you from selling certain products in the U.S.
- Statutory damages: Plaintiffs may seek damages up to $2 million per counterfeit mark under the Lanham Act.
- Reputation harm: Being listed as a defendant in a Schedule A case can damage your online reputation and seller ratings.
Even legitimate sellers can be named in these mass filings due to broad search criteria or mistaken identity.
Defending Against a Schedule A Case
A strong defense begins with immediate action. If you discover your funds are frozen or receive notice of a Schedule A complaint, immediately:
- Confirm your inclusion on the complaint – The “Schedule A” document lists all defendants.
- Hire U.S. counsel – An attorney familiar with these cases can file an appearance, request to unseal records, and petition to lift freezes.
- Gather proof of authenticity – Documentation showing authorized sourcing or original branding can help rebut infringement claims.
- Consider settlement or dismissal options – In some cases, negotiated resolutions can minimize disruption and restore account access.
Foreign sellers who respond promptly and strategically often succeed in lifting account freezes and avoiding default judgments.
How We Help International Sellers Protect Their Rights
The Keleher Appellate Law Group represents foreign businesses targeted in Schedule A lawsuits filed in U.S. courts. We help clients understand the claims, file timely responses, and build strong defenses grounded in intellectual property law and procedural fairness. Our appellate insight further allows us to challenge improper injunctions and protect client interests.
Take Action Before It’s Too Late
If your business confronts a Schedule A lawsuit or an unexpected account freeze, don’t wait for the situation to resolve itself. These cases move fast, and inaction can lead to permanent financial loss.
Contact The Keleher Appellate Law Group, LLC today to discuss your options and protect your ability to continue doing business on Amazon, eBay, and Temu.