Amazon Seller Litigation & TRO Defense

Most sellers learn they have been sued when their Amazon balance goes to zero. There is no process server, no letter, and often no complaint they can read, because the case was filed under seal in a federal court hundreds of miles away and a judge signed a temporary restraining order before anyone told you it existed.

These are Schedule A cases: mass-joinder suits, most commonly filed in the Northern District of Illinois, naming dozens or hundreds of online sellers as defendants in a single action over alleged counterfeiting. The mechanics are designed to freeze assets first and negotiate later, and the economics are designed so that settling is cheaper than defending. That calculus is not always correct, and it is never correct without an evaluation.

We defend sellers in these cases and have recovered millions in held and restrained funds. Prior results do not guarantee a similar outcome.

How these matters relate

Litigation is usually the end of a chain that started with a marketplace complaint. The rights owner reported the listing, the listing came down, and when the seller kept selling or the brand escalated, the dispute moved to federal court.

The reverse is also true: a lawsuit routinely triggers marketplace consequences, including account deactivation and indefinite fund holds that persist after the case resolves. Winning the case and getting the money released are separate tasks.

For funds restrained by Amazon rather than by court order, the arbitration and funds pillar is the right starting point.

Frequently asked questions

My Amazon funds were frozen by a court order. What do I do first?

Find the case. The order will identify a court, a case number, and plaintiff's counsel, and the docket will show the deadlines already running against you. Do not contact plaintiff's counsel to explain yourself before you know what has been alleged. Retaining counsel promptly preserves the ability to challenge the freeze itself.

Can I just ignore a Schedule A lawsuit and open a new account?

No. Ignoring the case typically produces a default judgment, and statutory damages in counterfeiting cases can be severe. Amazon also links accounts, so a replacement storefront is likely to be deactivated and can be added to the enforcement record. Default converts a defensible dispute into a collectible judgment.

How much does it cost to defend a Schedule A case?

It depends on whether the objective is a negotiated release of funds or a contested defense through the injunction stage. Many matters resolve at the early stage for meaningfully less than the restrained amount. We give a candid assessment of both paths after reviewing the complaint and the amount actually frozen.

Can I get the restrained amount reduced?

Frequently, yes. Plaintiffs often freeze an amount untethered from a defendant's actual sales of the accused product. Where the sales data shows a small number of units, courts have narrowed overbroad restraints. That argument has to be made before or at the preliminary injunction stage to be effective.

Can a seller sue Amazon?

Sometimes, though the Business Solutions Agreement generally directs disputes to arbitration rather than court. Whether litigation is available depends on the claim, the parties, and how the agreement applies to the facts. Many seller claims against Amazon are best pursued in arbitration, which is a distinct practice area for us.

Does settling mean admitting I sold counterfeits?

Not necessarily. Settlements in these cases are commonly resolved without an admission of liability, and the terms are negotiable. What matters most practically is whether the resolution releases the restrained funds, dismisses you from the case, and avoids an entered judgment that would follow the business.