Federal suit claims Tempe used raids, public smear campaign to destroy local bar

PHOENIX — The owners of Tempe Tavern have filed a federal civil rights lawsuit accusing the city of Tempe, its police chief and multiple law-enforcement officials of orchestrating a coordinated campaign of selective enforcement, harassment and public smearing that they say has devastated the bar’s business.

The 21‑page complaint, filed Feb. 23 in U.S. District Court, alleges the city targeted the Apache Boulevard bar through multiple raids, heightened scrutiny and public statements that falsely linked the business to a fatal September 2025 hit‑and‑run crash.

Tempe Tavern wants a jury to determine how much compensation it should receive.

The suit names the city of Tempe, Tempe Police Chief Kenneth McCoy, Lt. Erik Hernandez, Arizona Department of Liquor Licenses and Control Lt. Luis Samudio and Director Ben Henry.

Tempe Tavern alleges the city created “a policy or custom” aimed at shutting the bar down. Doing so, they violated its constitutional rights to due process and equal protection. It also alleges civil conspiracy, defamation and false light invasion of privacy.

In a statement released Thursday, the city disputed the lawsuit’s characterization.

“The notice of claim estimates damages in lost business and ‘reputational harm’ of more than $9 million. The city forcefully rejects this claim as absurd,” the statement said. “The City of Tempe and the Tempe Police Department will continue to stand up for the safety of our community and the young people who live and go to school here.”

Claims of selective enforcement at Tempe Tavern

Tempe Tavern was subjected to two high-profile, multi‑agency raids last year, in April and in November.

The November dragnet caught 249 alleged underage patrons. Of those, 246 people were cited and released and 3 were booked into jail, according to Tempe Police.

“These are shocking numbers. We don’t celebrate them. Underage drinking puts people at risk, and that’s why we take it seriously,” read a since-deleted post on X from Tempe Police.

Tempe police called the raid unprecedented, a description with which the bar agrees.

The bar owners, through their attorney Timothy LaSota, allege these large-scale inspections were unprecedented in their size and publicity. Other bars near Arizona State University didn’t get the same scrutiny, according to the suit.

The filing says that despite the large number of cited patrons, the 57 agents on scene didn’t find any liquor or fire code violations. They cited an employee whose sweatshirt partially covered his required security identification. That charge was later dismissed.

Tempe Tavern argues that these minor findings do not justify the scale of the enforcement or the public attention directed by city officials.

The complaint further alleges enforcement intensified after the state liquor department received a $120,000 grant in May 2025 to increase underage drinking enforcement, claiming the bar “appears to have been uniquely targeted.”

Defamation allegations over hit‑and‑run case

One of the most public incidents happened in September when the Tempe Police Department linked a deadly Sept. 14 hit‑and‑run to the bar. The crash happened near Rural Road and Lemon Street and police published a “Community Services News” bulletin stating a 19‑year‑old woman involved in the crash had been at Tempe Tavern earlier that night.

While the woman had indeed visited the bar, the lawsuit says she presented identification listing her age as 22, and staff properly scanned and verified it.

Tempe Tavern argues the posts falsely implied the bar contributed to the fatal crash and notes police did not publicly mention other locations the woman visited that night where alcohol was present, including ASU events and house parties.

The bar says it repeatedly sought the official police timeline of the woman’s movements but waited months to receive it.

“For nearly two months, Tempe Tavern has been requesting a copy of the investigative timeline referenced by Tempe Police in their December 3 public news release,” the bar said on Feb. 10. “Transparency matters. When government agencies release public statements that affect a local business, the underlying records should be available – especially when those statements link the business to a tragic event.”

The lawsuit says the bar eventually received the report but only after filing a lawsuit under Arizona’s public‑records law. Owners say the resulting news coverage, fueled in part by the city’s statements, caused significant reputational damage, pointing to a news coverage about the police linking the crash to the bar.

The lawsuit claims the combined effect of the raids, public statements and delays in releasing investigative records has “largely destroyed” the business. Gross sales are now “approximately 10%” of what they were before the enforcement actions, according to the filing.

Related

249 arrested in 1 night at Tempe bar for underage drinking, fake IDs173 people in Tempe bar arrested for underage drinkingTempe working to update its nuisance and loud party ordinancesGreat Wolf Lodge looks to expand resort with additional towerBygone mall favorite Hot Dog on a Stick plans return to ArizonaPhoenix tourism hits record $13.4 billion in visitor spending in 2025