A federal judge has rejected a request from the operator of Mississippi’s Alcoholic Beverage Control warehouse to dismiss a lawsuit brought against it on behalf of Mississippi businesses.
Uno Mas, an Oxford restaurant, filed a class action lawsuit against Iowa-based Ruan Transport Corporation over the debacle at the ABC warehouse earlier this year when a software change led to long delivery delays and liquor shortages at Mississippi restaurants, casinos, bars and stores. The restaurant said the delays resulted in lost revenue and harmed businesses, and that Ruan kept fees for deliveries it failed to make.
The ABC warehouse is the single wholesale distributor of almost all alcoholic beverages in the state. With the exception of beer and light beverages, all alcohol in Mississippi package stores and restaurants goes through the warehouse in Gluckstadt. While ABC is run by the Mississippi Department of Revenue, the state contracts operation of the warehouse with Ruan, which has been operating it since 2023.
When Ruan asked the judge to dismiss the case it argued that its contract was with the Department of Revenue, not Uno Mas and other businesses that receive products from the warehouse.
However, Ruan’s contract with DOR requires the company to “guarantee next workday delivery” to businesses buying alcohol. The judge found that even though Uno Mas did not sign the contract, it was intended to benefit from the contract and can sue Ruan over a potential breach.
The outsourcing of ABC operations resulted from 2022 legislation to address longstanding problems with the state running the warehouse. The “alcohol crisis” early in 2026 renewed calls by some lawmakers to privatize the operations.
In court documents, the judge noted that “interestingly, it appears the Legislature did anticipate an inefficient company might poorly operate ABC’s warehouse, resulting in a lawsuit.” The state specified in the law that any lawsuits brought over warehouse operations would be brought against the operator, not the state.
The ABC warehouse operations not only impact Mississippi businesses, but also state revenue. The ABC division collected $108 million last year, about 1.5% of the state’s total annual tax revenue.
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