California wine and spirits retailers will have to pay $13 million to settle allegations of civil fraud

Wine retailer Wine Depot Inc. will pay $7.5 million to resolve allegations that it defrauded customers by overcharging for its products.

The California Liquor Control Board announced Tuesday that the settlement is part of a broader agreement in which the company will pay an additional $3 million to $5 million in penalties and other sanctions.

Wine Depot, based in Temecula, California, was accused of deceiving consumers by over-charging the company for products it didn’t sell.

The company said the settlement covers about 2,000 customers who were deceived by the false claims.

Under the agreement, the company, which has been in receivership since 2011, will pay a $13.5-million penalty, $5.2-million to $10.5 of which is an interest rate penalty.

It will pay another $2 million in interest and $3.5 for each day that it does not pay.

Winema Depot will pay the rest of the penalties and interest over the next two years.

The settlement will be served on Oct. 31, 2019.

In addition to the penalties, Wine Depot will also pay $2.5 billion to settle claims from consumers who alleged it was deceptive in its sales and promotions.

The California Alcoholic Beverage Control Board agreed to pay that settlement as well.

The settlement is subject to the terms of a consent decree the state reached in July 2017 with Wine Depot.


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