A federal judge in North Carolina just handed the FDA a major early win in its crackdown on unauthorized vaping products. The U.S. government secured a default judgment against Dream Distro LLC and its owner, Faisal A. Alhadrami, after the company failed to respond to the lawsuit within the required 21 days.
U.S. District Judge James C. Dever III approved the government’s request on Tuesday in the Eastern District of North Carolina. Court records show that neither Dream Distro nor Alhadrami filed any answer after being properly served. That procedural slip now puts the company on track for a permanent injunction that could shut down its sales of flavored e-cigarettes for good.
What Happens Next in the Dream Distro Case
With the default judgment in place, the FDA will now file for a final default judgment. If granted, the court would issue a permanent injunction barring Dream Distro, Alhadrami, and anyone working with them from importing, selling, or distributing any e-cigarette products that haven’t received FDA premarket authorization.
The agency is also seeking other relief, though details haven’t been spelled out yet. For anyone in the vape wholesale space, this is the kind of ruling that sends a clear message: ignoring FDA paperwork can quickly turn into a business-ending problem.
FDA’s Core Allegations: Unauthorized Flavored Vapes Still on the Market
At the heart of the complaint is the claim that Dream Distro continued moving e-cigarette products that never received the FDA’s green light for marketing in the United States. Under current rules, any vape sold here must have gone through the premarket tobacco product application (PMTA) process or qualify for another exemption. Most flavored disposables simply don’t.
The specific products named in the filing include popular brands such as:
- Orion Bar
- Geek Bar
- Flair Plus
- CLVR BAR
These are exactly the kinds of colorful, sweet-flavored devices regulators have been targeting because they tend to catch the eye of younger users.
How the Situation Unfolded
According to the original complaint (filed in 2025), FDA inspectors first warned Dream Distro back in August 2024. The company said it had stopped selling the offending products, but follow-up checks allegedly found them still in stock and moving.
Things escalated in July 2025 when Alhadrami acquired the business and its inventory. Another FDA inspection in August turned up more of the same unauthorized items, which is when the agency added him personally as a defendant. This isn’t the first time the FDA has pursued both the company and its principal owner—regulators have made it clear they’re going after individuals who keep the supply chain running.
For context, this case is running alongside a similar lawsuit against PSM101 LLC (also known as Center Point Distributors) in New Jersey. That one also involves repeated warnings dating back to 2021 and continued sales of unauthorized flavored vapes.
Why This Matters for the Industry Right Now
The FDA has been steadily ramping up enforcement against the flood of unauthorized flavored disposables still circulating in the U.S. market. Cases like this one show that simply saying “we stopped” isn’t enough if the products keep showing up during inspections. A default judgment makes the outcome even more straightforward for the government—no long trial, just a fast path to a binding court order.
Case Details
- Case Name: U.S. v. Dream Distro LLC et al.
- Case Number: 5:25-cv-00577
- Court: U.S. District Court for the Eastern District of North Carolina
As of the latest court filings, defense counsel information has not been entered.
This article is compiled from publicly available court documents and news reports. It is shared for industry awareness only and does not constitute legal advice. Vaping regulations vary widely by country and state—always check current local rules before importing, selling, or distributing any e-cigarette products.