FDA Wins Default Entry in Case Against E-Cigarette Distributor, to Seek Permanent Injunction

Apr.09

The U.S. Food and Drug Administration (FDA) has made procedural progress in its lawsuit against North Carolina-based e-cigarette distributor Dream Distro LLC and its owner. A federal district judge granted the government’s request for entry of default after the defendants failed to respond to the complaint within 21 days of service. The government will next seek a default judgment, including a permanent injunction.

Key Points at a Glance

U.S. District Judge James C. Dever III approved the government’s request for entry of default against Dream Distro LLC and its owner, Faisal A. Alhadrami, on April 7.
Court records show that the defendants failed to respond to the complaint within 21 days after being served.
The U.S. government will next file a motion for default judgment, seeking a permanent injunction and potentially other relief.
The FDA’s lawsuit, filed in September 2025, alleges that Dream Distro and Alhadrami were warned to stop distributing e-cigarettes that lacked premarket authorization.
Brands mentioned in the complaint include Lost Vape Orion Bar, Geek Bar, Flair Plus, and CLVRBAR, all reportedly manufactured in China.

2Firsts, April 9, 2026

According to Law360, the U.S. Food and Drug Administration (FDA) has secured a significant procedural victory in its effort to permanently block a North Carolina-based e-cigarette distributor from importing and selling illegal flavored e-cigarettes from China, after a federal judge granted the government’s request for entry of default.

Court Grants Default Entry Against Dream Distro and Its Owner

U.S. District Judge James C. Dever III approved the government’s request for entry of default against defendants Dream Distro LLC and its owner, Faisal A. Alhadrami, on April 2. Court records indicate that both defendants failed to respond within 21 days after being served with the complaint.

According to reports, the U.S. government will next move for a default judgment, seeking a permanent injunction and possibly additional remedies.

Government Seeks Permanent Ban on Sale of Unauthorized E-Cigarettes

In its complaint filed in September 2025, the government alleges that the FDA had previously warned Dream Distro and Alhadrami to cease distributing e-cigarettes that had not received premarket authorization, as such products are illegal to sell in the United States.

The government is asking the court to permanently prohibit the defendants and all their employees from continuing to sell these unauthorized e-cigarette products.

Case Involves Multiple China-Manufactured Flavored E-Cigarette Brands

The report notes that the FDA has intensified enforcement actions in recent years against companies selling unauthorized e-cigarettes, with a particular focus on products that appeal to youth. Regulators have especially targeted flavored e-cigarettes manufactured overseas.

The lawsuit states that the defendants sold brands including Lost Vape Orion Bar, Geek Bar, Flair Plus, and CLVRBAR, all of which are manufactured in China.

Image source: Law360

References:

[1] NC Vape Seller Defaults In FDA Suit Over Illegal Imports

Also Read:

[1] FDA Opens Public Comment Period on Draft Guidance for Flavored E-Cigarette Applications

[2] FDA Says It Will Not Take Enforcement Action Against Zone Nicotine Pouches Until Lawsuit Is Resolved

[3] Reuters Exclusive: FDA’s Fast-Track Review of Nicotine Pouches Slows Over Youth and New-User Concerns

[4] FDA Filing Shows RIF Notices for 229 CTP Employees Were Largely Rescinded

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