Lawsuit Makes Splash Against Mountain Pure

by Arkansas Business Staff  on Monday, Jan. 20, 2014 12:00 am  

John Stacks, as seen in the online video "Rampant Injustice."

It looks like more bad news for the water bottling company Mountain Pure LLC of Little Rock.

Georgia-Pacific Corrugated LLC of Atlanta, a supplier of cardboard packing material, has filed a civil lawsuit in Pulaski County Circuit Court alleging that Mountain Pure and its related entities, Mountain Pure MS LLC and Mountain Pure Texas LLC, haven’t paid their bills.

The total amount allegedly owed?


John Stacks, owner of Mountain Pure, told us Monday that Georgia-Pacific is a "fine company" and he has enjoyed doing business with it.

"But due to box problems we had to make changes to another supplier, we acknowledge we may owe them some money and are working on getting our invoices paid as this is a priority to us," Stacks wrote in an email to Whispers. "We are digging out from underneath the issues and hope to work things out."

But as you recall, Stacks, who is also the CEO and principal owner of HomeBank of Arkansas, was indicted in December by a federal grand jury in Little Rock on 11 counts related to an SBA disaster-related loan, which he received in 2009 after a tornado damaged his property at Damascus (Van Buren County). He has told Arkansas Business that the charges are “without merit.” He has pleaded not guilty and his trial is set for the week of Sept. 29 in U.S. District Judge J. Leon Holmes’ courtroom.

And back in January 2012, Mountain Pure was the site of a raid by federal agents. The company, Stack’s son and other employees who were at the plant during the time of the raid sued the agents in U.S. District Court in Little Rock for their alleged heavy handedness in the handling of the raid.

“The agents approached the bottling plant in a long convoy with lights flashing,” the lawsuit said. “They surrounded the plant and blocked all exits.”

Employees also complained that federal agents prevented them from leaving the plant for several hours.

Mountain Pure said in the lawsuit that after customers and suppliers got wind of the raid, they stopped doing business with Mountain Pure, which resulted in a “substantial” loss of profits.

The defendants haven’t filed an answer in the lawsuit yet.

Stay tuned.



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