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In recent years, a growing number of online sellers in Florida have found themselves entangled in Schedule A lawsuits—a legal tactic used primarily by large brand owners to combat alleged intellectual property (IP) infringement on e-commerce platforms like Amazon, eBay, and Etsy. What begins as a routine sale can quickly spiral into a legal nightmare involving frozen PayPal or Amazon accounts, takedown notices, and asset seizures, all filed under sealed court orders hundreds of miles away—in federal court in Chicago.
If you’re a Florida-based online seller affected by a Schedule A lawsuit, you’re not alone—and you do have options. Here’s what you need to know from The Keleher Appellate Law Group.
What Is a Schedule A Lawsuit?
A Schedule A lawsuit is a type of federal IP case, typically filed in the Northern District of Illinois (Chicago), in which a plaintiff—usually a major brand—accuses numerous anonymous online sellers of selling counterfeit or infringing goods. These lawsuits are filed under seal and often rely on ex parte motions for a temporary restraining order (TRO), which allows the court to freeze the accused sellers’ accounts before they even know they’re being sued.
Schedule A refers to the attached list of defendants—sometimes hundreds at a time—identified only by seller IDs, storefront names, or aliases. Florida sellers may not realize they’ve been included until their funds are frozen or they receive a notice from the marketplace or payment processor.
How Schedule A Lawsuits Impact Florida Sellers
- Frozen Accounts and Assets: One of the most distressing effects is the freezing of funds in payment accounts, such as PayPal or Amazon. These injunctions can result in the loss of thousands of dollars in revenue, often without prior warning, leading to significant cash flow problems for small and mid-sized online retailers.
- Takedown of Listings and Storefronts: Once a TRO is issued, platforms like Amazon, Etsy, or eBay are required to suspend or remove listings associated with the accused seller. In some cases, entire storefronts are disabled. This leads to immediate loss of income and reputational damage.
- Out-of-State Litigation Burden: These lawsuits are almost always filed in Chicago, meaning that a Florida-based seller is suddenly expected to defend themselves in a federal court across the country, often against sophisticated corporate counsel.
- Risk of Default Judgment: Many sellers ignore the lawsuit, thinking it’s a mistake or a scam. Unfortunately, inaction can result in a default judgment, sometimes exceeding $100,000, plus a permanent ban on selling the brand’s products.
Defense Strategies for Online Sellers
At The Keleher Appellate Law Group, we’ve successfully defended Florida online sellers in Schedule A cases filed in Chicago federal courts. Here are common defense strategies:
Challenge Jurisdiction
The court must have personal jurisdiction over the seller. If your business has no real ties to Illinois, your attorney may file a motion to dismiss on jurisdictional grounds.
Negotiate a Voluntary Dismissal or Settlement
Many Schedule A plaintiffs are willing to settle for significantly less than the judgment amount, especially when the infringement is minimal or unintentional. An experienced Schedule A defense attorney can often negotiate the unfreezing of funds and a quiet exit from the litigation.
File an Appearance and Motion to Modify the TRO
Filing an appearance protects you from a default judgment and can open the door to lifting account freezes. Courts are sometimes receptive to motions that show you’re acting in good faith and didn’t intentionally infringe.
Argue Lack of Infringement or Fair Use
If you’re reselling genuine goods or using the brand’s name in a legally permissible way (e.g., comparative advertising), your defense may include arguments based on the first-sale doctrine or fair use.
Why Work with a Chicago-Based Defense Firm?
Because these lawsuits are litigated in the Northern District of Illinois, it’s critical to work with a Chicago-based attorney who knows the court, the judges, and the common tactics used by plaintiffs. Attorney Christopher Keleher is not only based in Chicago but also an experienced appellate and IP defense lawyer who routinely defends Florida sellers targeted in these mass lawsuits.
Take Action Quickly
Timing is crucial. If you’ve received notice of a Schedule A lawsuit or found your funds frozen, do not ignore it. These cases move quickly, and your failure to respond can lead to lasting financial and reputational harm.
At The Keleher Appellate Law Group, we offer targeted, cost-effective defense services for Florida-based online sellers. We’ve helped numerous clients get their accounts unfrozen, listings restored, and lawsuits dismissed or settled. If you’re a Florida online seller facing a Schedule A lawsuit in Chicago, don’t try to navigate it alone. Contact The Keleher Appellate Law Group today to schedule a confidential consultation.