Yoel Romero obtained a judgment against supplement maker Goldstar in state court in New Jersey. At a hearing to determine damages, the Court issued an order granting him damages totaling $27 million. Of course, the issue will be collecting on the amount.
Romero was suspended by the UFC for violating the UFC Anti-Doping Policy and was suspended for 6 months. For working with USADA in determining the alleged tainted supplement, he received a lighter sentence that the guidelines.
Once the source of the alleged failed drug test was identified, Romero decided to sue the supplement company. Romero used the product Shred Rx made by Goldstar Performance Products. Despite filing the lawsuit, Goldstar Performance Products never responded to the lawsuit.
According to its web site, the company is based out of East Hanover, New Jersey and features a variety of supplements. It was noted that the supplement contained Ibutamoren, a banned substance. The substance increases lean body mass to create bigger muscles.
As a penalty for not responding to the lawsuit, Romero moved for an order of default and default judgment. This came to fruition this past December.
Yoel Romero Default by Jason Cruz on Scribd
In requesting this order from the Court, it essentially confirms that the allegations brought by Romero are true and that a hearing may be set to claim the damages. On Tuesday, the hearing day came for Romero. Howard Jacobs, the renowned doping lawyer from Southern California, made a special appearance before the Court to argue the damages for Romero. It was announced that the Court awarded $27.45 million to Romero.
Wow!#HelwaniShow pic.twitter.com/668bKdan0H
— Jed I. Goodman (@jedigoodman) May 28, 2019
Of course, this is great. But, with everything legal, you should leave it up to the lawyers. Real lawyers. Obtaining a judgment is one thing. No doubt a success. But collecting on the debt is another.
Most MMA fans probably don’t know that there must be another proceeding (a completely separate lawsuit) for Romero to realize on the judgment. This might include having to pay to get the money from the defendant and even repossessing property to realize on the actual dollar amount. Even then, it’s unlikely he’ll see that much money. Moreover, in these situations where a company just flat out doesn’t respond to a lawsuit, the plaintiff is just holding a piece of paper. Even if there were assets, they may be in line with more senior creditors trying to get money from them. But most likely, they won’t get the amount the Court granted them.
In the event that Goldstar is still around, there can be several issues at hand. First, they may be claiming no jurisdiction because they have no contacts with the state court in New Jersey. This might be a little far-fetched based on its business address and the old “International Shoe” test for you lawyers out there. Second, they might still appear in the lawsuit within a certain period of time. If so, they can ask the Court to ‘set aside’ the judgment. There might be a monetary penalty if the Court thinks they were just being lazy, but not a $27.45M penalty.
In the end, the judgment looks great on paper. But, unfortunately for Romero, it may be that all he’ll have is paper to hold the judgment. MMA Payout will keep you posted.
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