In a recent article published by Law360, Charlotte Associate Wade Leach shared insights into some of the high-profile litigation shaping North Carolina’s legal landscape in 2024.

One such case involves Blueworks Corp., a Chinese pool parts supplier that filed for bankruptcy after a $16 million judgment for false advertising and unfair business practices. Hayward Industries, a competitor that manufactures saltwater chlorination systems and other pool equipment, accused Blueworks of misleading customers by blurring the line between their products and falsely advertising replacement parts. Despite the bankruptcy filing, Hayward has secured multiple extensions on an asset freeze and alleges that Blueworks' CEO fled to China in an attempt to evade liability.

Leach explains that Blueworks' bankruptcy, and the adversary proceeding aimed at delaying the $16 million judgment, has led to additional litigation for Hayward while also complicating matters due to the automatic stay triggered by the bankruptcy.

Leach also highlighted the significant challenges ahead, saying, “In all likelihood, it will be some time before there's any finality to this case — and what Hayward may be able to ultimately collect, especially if the defendants are siphoning or moving assets overseas.” He also pointed out the broader implications, adding, “This should be a shot across the bow for every company doing business in North Carolina that they are expected to play by the rules — and when they don’t, there are severe consequences.”

Leach’s comments underscore the increasing complexity of litigation in North Carolina and the need for businesses to operate with integrity. As these high-stakes cases unfold, it is clear that companies engaging in deceptive or unlawful practices will face serious legal and financial repercussions.

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