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In January 2025, Harrison Suarez filed a lawsuit against his Compass Coffee co-founder Michael Haft alleging fraud and racketeering. Suarez also accused Haft and his father of misusing millions of dollars in federal COVID-19 relief funds. That lawsuit has now been settled.
In his original filing, Suarez accused the Hafts of a “pattern of defrauding business partners and others to unlawfully enrich themselves,” alleging that their “series of schemes amount to a pattern of racketeering activity.” The Hafts denied the allegations and tried to have the complaint thrown out last November. As Kevin Haynes reports for Inc, the judge dismissed the racketeering claims but allowed the lawsuit to continue.
Last week, the two sides agreed to settle. Terms of the deal were not disclosed, but lawyers for both sides filed for voluntary dismissal, stating that Suarez’ claims had been resolved. Neither party replied to Haynes’ request for comment.
As the lawsuit progressed, Compass ran into financial difficulties. In January, the company filed for bankruptcy protection following legal battles over unpaid rent. Founded in 2014 by Haft and Suarez, the Washington, D.C.-based company grew to operate 25 cafes in the region. Compass blamed its financial struggles on a changed retail landscape and listed liabilities between $10 million and $50 million. A month later, U.K. chain Caffe Nero bought Compass’ assets in a bankruptcy auction for $4.75 million.
Read the full story on the Compass Coffee lawsuit conclusion here.
