Compass Coffee's Bitter Feud Finally Finds its End – CoffeeTalk

A lawsuit by Harrison Suarez, a co-founder of Compass Coffee, alleging fraud against his business partners Robert and Michael Haft, has been dismissed following a settlement. The terms of the agreement, reached after almost two years of litigation, remain undisclosed, and a stipulation of voluntary dismissal was filed in U.S. District Court for the District of Columbia on October 8, where both parties agreed to bear their own legal costs.

Suarez had initially filed the lawsuit in January 2025, accusing the Hafts of concealing ownership details and depriving him of his rightful share in the coffee chain he helped establish. He claimed they had misled him into believing he was an equal partner and alleged a prolonged scheme to dilute his ownership interests and ultimately push him out of the company. The lawsuit also involved accusations regarding the use of approximately $10.5 million received by Compass Coffee from COVID-19 relief programs.

The Hafts denied any wrongdoing, insisting that the conflict arose from a business fallout rather than a fraudulent scheme. Their legal team characterized the lawsuit as the lament of a co-founder following a business divorce rather than a case involving criminal misconduct.

Despite initial signs that the case was heading toward an extended court battle—especially after U.S. District Judge Sparkle L. Sooknanan allowed the core fraud and breach-of-contract allegations to proceed—negotiations culminated in a settlement. Judge Sooknanan dismissed the racketeering claims but found that most of Suarez’s allegations were sufficiently articulated to survive dismissal.

The unfolding of this litigation coincided with Compass Coffee’s financial decline, leading to the company filing for Chapter 11 bankruptcy about a year after the lawsuit was initiated. In an auction conducted by the bankruptcy court, London-based Caffè Nero acquired Compass Coffee’s assets. Recently, U.S. Bankruptcy Judge Elizabeth Gunn concluded the Chapter 11 proceedings, stating that the company did not have enough resources to implement a reorganization plan.

Compass Coffee was founded in 2014 by former Marines Michael Haft and Harrison Suarez and expanded from a single café in Washington, D.C., to over 20 locations across the D.C. metropolitan area. Following its bankruptcy sale, Caffè Nero announced intentions to continue operating the remaining 17 cafés under the Compass Coffee brand.

Read More @ Inc.