Upper Deck Company - Lawsuits

Lawsuits

Under the executive direction of McWilliam, Upper Deck became known as a litigious company. Stars like Mickey Mantle, Kareem Abdul-Jabbar and Ted Williams, Upper Deck employees, vendors and even licensors were forced to the courts to settle simple disputes with McWilliam. Pelton & Associates successfully froze all of Upper Deck's product shipments after they proved to the court that they actually owned the custom logos, designs and packaging and that Upper Deck had not paid them.

Konami - After Upper Deck admitted to counterfeiting cards, the lawsuit was settled out of court.

MLB - filed a federal lawsuit in New York against Upper Deck, accusing the company of trademark infringement and illegally selling cards that feature official team logos and uniforms. The complaint also notes that Upper Deck owes MLB $2.4 million.

Kareem Abdul-Jabbar - Upper Deck used six photos of Abdul-Jabbar during his college years without permission. The photos were part of a trading card series called "Greats of the Game," which also had Abdul-Jabbar's name and signature. "Abdul-Jabbar never authorized the production of the cards," the suit reads according to Courthouse News. "In fact, at all times, Upper Deck was fully aware that Abdul-Jabbar had never authorized Upper Deck to use his photograph, name and signature for college-themed cards, and Abdul-Jabbar had previously rejected Upper Deck's request for such authorization." Upper Deck has yet to respond to the allegations.

American International Specialty Lines Insurance Company - This appeal (12-11-2008) arises out of an insurance policy that The Upper Deck Corporation (“Upper Deck”), purchased from American International Specialty Lines Insurance Company (“AISLIC”). The policy insured a tax strategy that KPMG, an accounting firm, developed for Upper Deck. The IRS investigated the tax strategy and determined that it constituted an improper tax shelter. Upper Deck then settled with the IRS for $80 million in back taxes and interest, and with the California Franchise Tax Board for $17 million in back taxes and interest.

After AISLIC rejected Upper Deck’s claim that the policy covered the loss incurred as a result of the settlement, Upper Deck and its Chief Executive Officer, Richard McWilliam, filed a complaint in the United States District Court for the Southern District of California seeking, inter alia, a declaratory judgment that the policy issued by AISLIC covered the loss. Subsequently, the district court granted AISLIC’s motion to compel arbitration.

A three-member panel of arbitrators held that Upper Deck and McWilliam were not entitled to coverage because Upper Deck had abandoned the tax strategy that AISLIC had insured. The district court confirmed the arbitration award.