Sidley Secures Complete Jury Verdict on All Claims and Cross-Claims After Nine-Week Trial

Sidley secured a significant trial victory for ASICS America Corporation after a nine-week trial with over US$50 million at stake. On June 16, 2026, a jury in Orange County Superior Court returned a unanimous verdict awarding ASICS US$6.1 million (plus contractual interest and fees) for its breach of contract claim for unpaid bills, and rejected cross-claims by Shoebacca Ltd. for breach of contract, breach of the implied covenant, and fraud, for which Shoebacca had asked for US$44 million in lost profit damages in addition to punitive damages and fees.

The disputes arose out of a series of contracts between ASICS and Shoebacca for the sale of shoes. In April 2020, ASICS filed its lawsuit against Shoebacca in California to collect on US$6.1 million in unpaid invoices for shoes that were delivered. Instead of paying its bill, Shoebacca asserted cross-claims alleging that ASICS had breached a separate contract for what is known as “hash footwear” and engaged in fraud resulting in alleged damages exceeding US$44 million. After five years of intense litigation in Texas and California, with several appellate writs and an intervening bench trial, the parties squared off in a nine-week jury trial in Orange County in April 2026, presenting testimony from 23 fact and expert witnesses, including both parties’ current and former chief executives and chief financial officers. The jury deliberated for less than six hours before returning a verdict in ASICS’ favor on every count, finding that Shoebacca was required to pay its unpaid bills and rejecting Shoebacca’s claims of breach and fraud. That verdict is especially significant because of the issues at stake—Shoebacca’s theory of the case had been enterprise threatening for ASICS, as it effectively would have required ASICS to sell Shoebacca brand-new shoes at a price far below the cost of manufacturing them, resulting in massive losses for the company.

The Sidley cross-office team representing ASICS includes Jack Yeh, Collin Wedel, Lauren De Lilly, Rara Kang, David Carpenter, Yolanda Garcia, Sebastien Wadier, Robert McMahon, Annabeth Reeb, Christine Karaoglanian, and Lauren Emmerich. Yolanda and Annabeth are based in Dallas; the rest of the team is based in Sidley’s offices in Greater Los Angeles.