A & E Oil, Inc. (defendant) sold cigarettes purporting to be Newports. The cigarette boxes contained tax-stamps that were noticeably fake. Lorillard Tobacco Company, Inc. (plaintiff), the manufacturer of Newports, sued A & E for selling counterfeit cigarettes in violation of the Lanham Act. Lorillard presented evidence that A & E purchased the cigarettes from U.S.A. Cigarettes, a known dealer of counterfeit cigarettes. The district court found that A & E was “less than forthcoming” with respect to certain evidence produced. Indeed, A & E produced checks from A & E to U.S.A. Cigarettes well after A & E stated that it had produced all relevant business records. On summary judgment, the district court held that A & E knowingly violated the Lanham Act and thus awarded Lorillard attorneys’ fees. A & E appealed the award of damages but did not contest the district court’s finding that the cigarettes were counterfeit.