WILMINGTON, Del. (AP) — Lawyers for a trade association are dropping a federal lawsuit alleging that a Virginia distillery has improperly tried to pass off whiskey as Scotch.

Attorneys for Scotch Whisky Association filed a voluntary dismissal in U.S. District Court in Delaware on Thursday.

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The association’s lawsuit claimed that the Virginia Distillery Co. has engaged in “false, misleading and deceptive” labelling of whiskey sold under the brand name “Virginia-Highland Whisky.”

The lawsuit claims the use of the term “Highland” and its spelling of “Whisky” falsely imply that the product is Scotch whisky wholly produced in Scotland.

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Whiskey made in the U.S. is spelled with an ‘e.’

Virginia Distillery CEO Gareth Moore issued a statement saying his company was working toward an amicable resolution of the dispute with the Scotch Whisky Association.

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