Madison County Circuit Judge Christohper Threlkeld granted an Edwardsville-based nail salon’s motion to voluntarily dismiss a defamation suit involving statements made on social media.
Plaintiffs EXO Nail Bar and EXO Lounge filed a motion to dismiss without prejudice on Sept. 13 through attorney Joseph Harvath of Byron Carlson Petri & Kalb LLC in Edwardsville. They moved to dismiss the complaint in its entirety against defendants Jonas Cathey, Ashley Garrison, Stefanie Anderson, Michelle Lynne Baker, Rebecca Obermark, Amya Helms, Drake Wasser, also known as Drake Chandler, Kim Kaemmerer, and Morgan Turner.
Threlkeld granted dismissal on Sept. 19 and canceled all previously scheduled hearings.
Prior to dismissal, Obermark filed a motion for sanctions on June 6 through attorney Donald Schoemaker of Greensfelder Hemker & Gale PC in O’Fallon.
The motion stated that EXO Lounge LLC and EXO Nail Bar LLC filed responses to Obermark’s discovery requests disclosing that both plaintiffs are owned by EXO Industries LLC. They also responded to a request for bank statements that it was “totally irrelevant and designed to invade the privacy of this plaintiff and obtain information from the plaintiff from 2017, 2018, 2019 and 2020 which are completely irrelevant and immaterial to the damages claimed by plaintiff in this case.”
Schoemaker sought corporate records. The plaintiffs responded, “The request seeks material which include private, confidential documents that are not relevant to the allegations in the complaint or material to the issue of liability or damages.”
The defendant also sought information pertaining to the plaintiffs’ submission or receipt of any documentation regarding the Payroll Protection Program loans, or PPP loans. EXO Lounge Inc. allegedly objected to the requests, calling them “harassing.”
Schoemaker wrote that the plaintiffs then filed a separate suit against Ricky Thai, XOXO Nail Bar Inc, Jenny Phan and Casca Nail Boutique LLC, which alleges XOXO Nail Bar Inc. operated out of 2 157 Center in Edwardsville.
Schoemaker wrote in Obermark’s motion for sanctions that EXO Lounge LLC, which is also operating at 2 157 Center in Edwardsville obtained PPP loans “to a white, non-Hispanic or Latino, female.” XOXO Nail Bar Inc. also allegedly obtained PPP loans “to an Asian male.”
“The amount of the PPP loans provided to XOXO Nail Bar Inc. reflected on Ex. I is identical to that reflected on the financials provided by plaintiffs in Exhibit F,” Schoemaker wrote. “However, as noted above, plaintiffs assert that EXO Nail Bar LLC did not obtain a PPP loan.”
Additionally, Schoemaker argued that there were inconsistencies with business names when determining where they conduct business and their financial information.
“Plaintiffs have violated the discovery rules in this matter by alleging a six figure loss due to defendant’s actions and presenting a financial statement for a non-party as their own when it is apparent from the above facts that XOXO Nail Bar Inc., doing business as EXO Nail Bar was operating the nail salon at 2 157 Center, Edwardsville, IL, not plaintiff EXO Nail Bar, LLC,” Schoemaker wrote.
Anderson filed a motion to join Obermark’s motion for sanctions on July 5. Kaemerer also filed a separate motion for sanctions on July 5, adopting Obermark’s motion. Wasser filed a motion to join Obermark’s motion for sanctions on Aug. 29. The case was dismissed before those requests were resolved.
The plaintiffs filed their complaint June 18, 2021, in the Madison County Circuit Court. They filed an amended complaint on Dec. 10, 2021.
According to the amended complaint, EXO Nail Bar and Lounge began operations as a nail salon, lounge and bar in Edwardsville in early 2020.
“Despite being new companies dealing with the wrath of a global COVID-19 pandemic, plaintiffs prospered into two of the most successful businesses of their kind in not only Edwardsville, Illinois, but the entire Southern Illinois and Eastern Missouri region and beyond,” the suit stated.
EXO Nail Bar and Lounge claimed they were “known as being respectable, virtuous, enjoyable, and prosperous businesses,” the suit stated.
The plaintiffs claimed they have suffered damages after several individuals wrote on social media that they were being investigated by the FBI for sex trafficking, money laundering and drugs.
The suit stated that Cathey published statements on the plaintiffs’ Facebook page accusing them of being raided by the FBI and engaging in human sex trafficking. The post was shared at least 251 times.
EXO Nail Bar and Lounge also claimed that in addition to several deleted statements on its Facebook page, Garrison wrote, “Wonder why my comment about the drug smuggling, prostitution, and human trafficking was deleted?!?!?! Looking suspicious.”
Anderson is accused of publishing a statement on the plaintiffs’ Facebook page stating, “Everyone on here needs to know the ‘issue’ they had yesterday was getting raided for sex trafficking!!!! Rot in hell to all involved. Truth is coming out!!!”
EXO Nail Bar and Lounge alleged Baker made a Facebook post stating, “One of their own employees discreeted (sic) that indeed Sex Trafficking was going on by one of the male staff members ALSO working there. But they had no clue till somebody got up and said something.. That’s why they were closed. They were under investigation for sex Trafficking of the women (customers) and later on following them, stalking, then making their move.”
Obermark is accused of writing a post stating, “Well you should check out the drama on their Facebook page EXO Lounge.. You may change your mind about going.”
Obermark allegedly replied to responses on her post, saying the plaintiff is suspected of engaging in sex trafficking, money laundering, and drugs.
EXO Nail Bar and Lounge alleged Helms made a Facebook post stating, “I mean a lot of people did see the fbi there and said money laundering was going on which was true but the dude has a lot of money and owns 2 other salons that ik of in Edwardsville.”
Wasser allegedly made a post stating, “As a former employee, I can confirm that on numerous occasions multiple other employees (including an owner) told us that there was money laundering going on. As far as sex trafficking is concerned, I don’t know about that, but there is shady business going on there without a doubt.”
EXO Nail Bar and Lounge claimed in its lawsuit that the statements published by the defendants “were unequivocally false, unprivileged, and were defamatory …”
Several of the defendants sought to dismiss the lawsuit, arguing that their comments were not defamatory, amongst other claims.
Madison County Circuit Court case number 21-L-706