A Grayson County jury has awarded $16.2 million to Specialty Payments Inc., represented by LPHS Managing Partner Chris Schwegmann, in a dispute that revealed a conspiracy to divert hundreds of millions of dollars in credit-card processing transactions.

After a six day trial in Sherman, Texas, the jury found that defendants Paynetworx LLC and ERI Brands LLC, along with their principals, had intentionally interfered with Specialty’s agreements and wrongfully withheld commission payments owed to the company. The verdict includes punitive damages and represents a complete victory for Specialty

The case pulled back the curtain on the often-opaque world of payment processing, where Specialty acted as a sales agent connecting merchants to processors like Paynetworx. Evidence at trial showed that the defendants secretly redirected more than $297 million in processing volume, cutting Specialty out of millions in earned commissions.

“This verdict affirms that even in a highly technical industry, fairness and transparency still matter,” said Schwegmann. “The jury understood that Specialty built this business, and others tried to take the profits once it became successful.”

Eugene Rome of Rome LLP (Los Angeles) served as co-counsel.