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If you’ve just learned your business is involved in Schedule A litigation, you’re likely facing an unexpected freeze on your assets and scrambling for answers. These cases can disrupt operations quickly and leave you wondering what comes next. The good news is there are steps you can take to protect what you’ve built. In this post, we’ll walk you through what Schedule A litigation is and how to respond in a way that protects your business assets and positions you for a better outcome.
What Is Schedule A Litigation?
Schedule A litigation is a type of legal action commonly used in trademark infringement cases—especially those involving online sales. Plaintiffs, often large brand owners, file lawsuits against many online sellers at once, listing them in a sealed attachment known as Schedule A.
These cases often start with a court order freezing the accused sellers’ assets—sometimes before the businesses are even aware of the lawsuit. You may only learn about the case after your bank account is frozen or your seller platform suspends your store. The purpose is to stop counterfeit goods from being sold, but many legitimate sellers find themselves caught in the net.
Understand What’s at Risk
If your business is named in a Schedule A lawsuit, your assets may be frozen without warning. This can include:
- Bank accounts
- PayPal or Stripe balances
- Amazon, Etsy, or eBay seller funds
- Inventory stored with third-party platforms
These freezes can seriously impact your cash flow. You may not be able to pay vendors, fulfill orders, or access funds to keep the business running. On top of that, your reputation could take a hit if your store is taken offline or labeled as selling counterfeit products.
Even if you believe your business has done nothing wrong, ignoring the lawsuit or waiting too long to act can make things worse.
Act Quickly and Strategically
Time matters in Schedule A litigation. The first step is to review the complaint and the court’s order carefully. You need to understand what you’re being accused of and what deadlines you’re facing.
Next, gather documents that show your business is legitimate. These might include purchase orders, shipping records, supplier information, product photos, and any communications with customers or platforms. Strong documentation can help your legal team argue that the asset freeze should be lifted or reduced.
In some cases, your attorney may file a motion to dissolve the asset restraint or to challenge the court’s authority over your business. Taking prompt, informed action can make a meaningful difference in the outcome of your case.
Separate Personal and Business Finances
One of the most effective ways to reduce the impact of a freeze is to keep your personal and business finances separate. If everything is commingled, the court may view your personal funds as fair game. That’s why it’s important to:
- Use separate bank accounts for business and personal spending
- Maintain clean records that show business-only use
- Avoid moving funds between personal and business accounts without documentation
Clear separation gives you a better chance of recovering or preserving your assets during litigation.
Use Legal Tools to Protect Long-Term Interests
Even if you resolve this case, it’s worth thinking ahead. Schedule A lawsuits are increasing, and it’s wise to make your business harder to target in the future.
One option is to form a limited liability company (LLC) or corporation if you haven’t already. These structures can help protect your personal assets from being affected by business disputes.
You can also take steps to show your products are legitimate. That means registering your own trademarks if you have them, keeping detailed records of your supply chain, and being able to demonstrate that your goods are not counterfeit. If your business is built on good-faith sales and transparent practices, those records can go a long way toward defending your position.
How We Can Help
Schedule A cases are challenging—but you don’t have to handle them alone. At The Keleher Appellate Law Group, LLC, we help businesses protect their rights and limit the fallout from litigation. If your case involves an appeal or post-judgment motion, we’ll step in to assess your position and work toward a solution that protects what you’ve worked hard to build.
Whether you’re in the early stages or looking to challenge a decision, we’ll help you take the right steps at the right time. Reach out to The Keleher Appellate Law Group, LLC to schedule a consultation and get the legal support your business needs.