A federal judge in California rejected the arguments of a law firm facing racketeering claims and potential class action for its part in a nationwide litigation campaign that netted more than $1 million from merchants threatened with lawsuits for selling “illegal” sexual enhancement products.

Beginning in 2017, Texas-based Outlaw Laboratory and its counsel, Tauler Smith in Los Angeles, sent thousands of letters to convenience store owners and “mom-and-pop” merchants selling competing products, warning that they were “selling illegal sexual enhancement drugs” and could be subject to “legal action for racketeering” and violations of the federal Lanham Act.

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