Tempe Tavern, a longtime Mill Avenue bar that made headlines after two large underage drinking sweeps in 2025, has taken its fight with the city to federal court, filing a lawsuit this week that accuses Tempe and state officials of orchestrating a “smear campaign” that gutted the business. The complaint, brought by Tempe Tavern 1810, LLC, alleges violations of the owner’s First and Fourteenth Amendment rights and seeks damages tied to lost sales. The suit names city and state officials tied to liquor-law enforcement and Tempe police as defendants.
According to Phoenix New Times, the complaint specifically calls out Tempe Police Chief Kenneth McCoy and Lt. Erik Hernandez, along with Arizona Department of Liquor Licenses and Control Director Ben Henry and Lt. Luis Samudio. In an email quoted in the filing, the bar’s attorney, Timothy La Sota, describes Tempe Tavern as a “scrupulous operator” and contends that “the defendants have targeted my client for extinction.” The lawsuit also argues that official statements and media coverage after the raids cast the bar in a false light and helped drive customers away.
Two large police operations in 2025
According to ABC15, a joint compliance check with state liquor agents on April 24, 2025 led to 173 people being detained at the tavern. Of those, 165 were cited as underage and eight were booked on additional charges. Police said that sweep followed multiple complaints about underage patrons and alleged fraudulent IDs, and officials warned the operation could trigger administrative action against the business.
Second sweep tied to a fatal crash
Officers and state agents returned on Nov. 20 for a larger operation that the city says uncovered 249 underage patrons and produced dozens of citations, including for fake IDs and providing false information, according to the City of Tempe’s timeline. The November sweep was prompted in part after investigators linked a 19-year-old suspect in a fatal hit-and-run to an appearance at the bar earlier that night, the city said. That second raid quickly drew wider attention, as detailed in a breakdown of the 249-person sweep and other coverage of the Arizona Department of Liquor Licenses and Control’s review.
Bar says raids crushed business
Tempe Tavern’s complaint says gross sales have plunged to roughly 10 percent of what they were before the 2025 sweeps and asks the court to compensate the owner for that financial hit. The filing disputes the state’s version of events, arguing that investigators did not document any unlawful alcohol sales during the operations and that the tavern was cited only for a single ID issue. At the same time, public records show multiple entries tied to the venue in 2025, Phoenix New Times reports. The lawsuit asks a federal judge to decide whether the enforcement efforts were proper or selectively aimed at the bar and to award damages if the court finds wrongdoing.
City and state defend enforcement
Tempe officials and state liquor investigators have framed the operations as routine compliance checks designed to keep students and the broader public safe. The City of Tempe’s timeline quotes Chief Ken McCoy as saying, “These operations are about safety, accountability, and preventing tragedies,” and notes that the Arizona Department of Liquor Licenses and Control is conducting a separate administrative review that could lead to sanctions, per City of Tempe. That process can continue on its own timetable even as the federal case moves ahead in court.
Legal issues to watch…