AMERICAN APPAREL'S ROAD TO BANKRUPTCY LITTERED WITH LAWSUITS

Original Story: forbes.com

As the prospects of bankruptcy for American Apparel have shifted from “if” to “when,” the company is faced with mounting legal baggage. A bankruptcy filing would automatically pause all lawsuits against the company, but its docket has grown in recent months with complaints from vendors, employees, shareholders and its infamous former CEO, Dov Charney – himself the target of a series of sexual harassment suits. A Toledo bankruptcy lawyer is reviewing the details of this case.

Last week, the New York Stock Exchange notified the company that it is at risk of being delisted from the exchange. The company has until November 15 to come into compliance with listing standards, but will likely be in bankruptcy court before then. American Apparel is ironing out the preliminary details of a restructuring plan that would see it skip a $14 million coupon payment due October 15 and use the 30-day grace period to drum up revenues during its pivotal Halloween shopping period before filing for Chapter 11, sources have told Debtwire.

Outside the small world of lawyers and bankers who have long eyed a restructuring for the company, American Apparel is as well known for Charney’s antics as it is for its clothing. A 2004 Jane magazine profile described Charney repeatedly masturbating in front of its reporter during interviews, and other stories followed that Charney referred to women as “sluts” and demanded that his store managers fire “ugly” employees. Lawsuits followed, alleging sexual harassment against many of the company’s female employees. A Boston M&A lawyer represents business clients in company restructuring and acquisitions.

American Apparel’s board of directors ousted Charney as chairman in June 2014, with cause – accusing him of refusing to take sexual harassment training and using company funds as hush money for former employees. The board highlighted the mounting legal expenses the company faced while defending lawsuits aimed at Charney, and said that potential financing sources would not deal with the company while Charney was involved.

Following his dismissal, Charney pursued a hostile takeover of American Apparel, reaching a deal with hedge fund Standard General to increase its hold on the company’s stock to 43% and potentially prop up Charney to retake control of the company.  This May, a group led by Eliana Gil Rodriguez, a former American Apparel employee and friend of Charney’s, sued the company in Delaware claiming that the board had concealed a plot to fire Charney after its reelection in June 2014 by issuing false and misleading statements.

But the alliance of Charney and Standard General was short-lived, as Charney filed a suit in June accusing Standard General and American Apparel of conspiring to remove him from the company. The hedge fund filed a lawsuit in July claiming that Charney had not met the financial conditions of the deal.

In September, American Apparel shareholders sued Standard General and board member Joseph Magnacca, the former CEO of RadioShack, claiming that the hedge fund is using the same vulture tactics on American Apparel that it used when it bought RadioShack debt to keep the company out of Chapter 11 before acquiring half its stores in bankruptcy. American Apparel’s shareholders claim that Magnacca and Standard General are too entangled, with Magnacca allegedly texting Standard General’s leader that he would be “anyplace anytime” for the hedge fund.

Vendor The Knit House Corp also sued the company last month, seeking $53,667 it claims was never paid on a fabric merchandise agreement. In June, BSG Tech LLC sued the company for infringement of its sound technology patents. More than 200 employees filed a class action against the company in April, claiming that they were laid off without proper legal notice. A Minneapolis class action lawyer is experienced in the effective resolution of class actions lawsuits as related to damage inflicted upon groups of people.

As bankruptcy fast approaches, shareholders are going after Standard General and Magnacca, Standard General and Charney are pursuing each other following their breakup, and Charney at this point is on no one’s team while he continues to make noise. Now Charney’s declaration of good faith at the time of his joining with Standard General has an ironic echo as the family drama comes under the jurisdiction of a bankruptcy judge. A Kansas City bankruptcy lawyer is following this story closely.

“The least important thing was me,” Charney said at the time. “I know that will be dealt with fairly later.”

DMC COULD SETTLE NURSES LAWSUIT FOR $42 MILLION

Original Story: freep.com

The Detroit Medical Center could soon settle for $42 million its portion of a 2006 class lawsuit over pay brought by registered nurses against eight metro Detroit hospital systems.

U.S. District Judge Gerald Rosen gave preliminary approval on Monday for the proposed settlement involving DMC and the roughly 24,000 nurses who worked at either DMC or the other seven hospital systems between December 2002 and December 2006. The lawsuit alleged a conspiracy among the hospitals to suppress the nurses' pay. A San Diego healthcare lawyer is reviewing the details of this case.

Settlements totaling $48 million were previously reached with the other hospitals, and that money has already been distributed to nurses, according to a website of the Seattle-based law firm Keller Rohrback that represented the plaintiffs. With this latest proposed settlement, the total size of the settlement could be $90 million — before attorneys fees and taxes.

Neither DMC nor the other hospital systems have admitted to any wrongdoing or to underpaying nurses. All eight hospital systems contended they acted independently in setting their nurses' pay and benefits and didn't collude to keep wages low. A Grand Rapids healthcare lawyer is knowledgeable in all areas of general health care.

The other hospitals and health systems were Henry Ford Health System, Mt. Clemens General Hospital (now McLaren Macomb), what is now St. John Providence, Oakwood Healthcare, the former Bon Secours Cottage Health Services, Beaumont Hospital and Trinity Health.

The DMC on Tuesday referred all comment to its attorney in the case, Veronica Lewis of Dallas-based Gibson, Dunn & Crutcher, who said in a statement that "The settlement is not an admission of liability but rather a business decision to bring the matter to a resolution.  We remain committed to our nurses and value the hard work and dedication of all our hospital staff." A Charleston healthcare lawyer is following this story closely.

An attorney representing the nurses, Mark Griffin of Keller Rohrback, declined comment.

More information regarding the settlement is available at detroitnursewages.com. The size of each individual check would be determined by the number of hours a nurse worked and his or her pay rate.

AG APOLOGIZES TO REPORTERS: 'NO EXCUSE' FOR SUBPOENAS

Original Story: detroitnews.com

Lansing — Attorney General Bill Schuette apologized Thursday to two journalists who were slapped with subpoenas by his office for news gathering on allegations of juvenile prisoner abuse in state prisons.

Sounding embarrassed, Schuette said he called Huffington Post reporter Dana Liebelson and Michigan Radio host Cynthia Canty to apologize for subpoenas sent to them by staff attorneys for information they obtained from plaintiffs and an attorney suing the Department of Corrections. A Minneapolis class action lawyer represents groups of people suing an organization whose actions have inflicted damages upon them.

"I said I was sorry and there's no excuse for that," Schuette said in a conference call Thursday evening with reporters. "It should not have happened. It will not happen again."

The Republican attorney general said he did not learn about the subpoenas until Monday while he was on a family skiing vacation in Colorado, when Liebelson disclosed the two subpoenas she was served during interviews with inmates last Thursday and Friday at state prisons in Ionia and Lapeer.

Schuette ordered the subpoenas immediately withdrawn Monday — the day the third subpoena arrived at Michigan Radio's office seeking "complete and unedited" audio and video recordings of a March 3 interview of an Ann Arbor attorney representing inmates who are suing the state for alleged sexual and physical abuse sustained as juveniles.

"He did apologize," said Canty, host of Michigan Radio's "Stateside" program. "And I am certainly accepting the apology."

Liebelson could not be reached Thursday for comment. But on Monday, she told The Detroit News she was served the first subpoena March 5 during the middle of an interview with one of the inmates suing the state at the Michigan Reformatory Prison in Ionia.

She identified the Attorney General's Office employee as David Dwyre, a special agent in the criminal division.

The next day, Liebelson said Dwyre was waiting for her at the Thumb Correctional Facility in Lapeer, the site of a third scheduled interview with a juvenile prisoner who is suing the state.

Liebelson said it was "intimidating" to be followed across the state from one prison to another.

Schuette would not disclose Thursday whether disciplinary action was taken against any of the attorneys involved in the subpoenas or the process that was followed in authorizing the subpoenas.

"I'm not going to go back into it," Schuette told reporters.

Deborah LaBelle, the Ann Arbor attorney whose radio interview with Canty was subpoenaed, said the Attorney General's Office has deployed "scorched earth" legal tactics in trying to get her class-action lawsuit dismissed. The lawsuit alleges that officials in the Michigan Department of Corrections failed to prevent abuse of juvenile inmates at the hands of adult prisoners and guards. A Charleston class action lawyer is following this story closely.

LaBelle said she hoped Schuette's apology to the journalists would signal the end of "abusive tactics" by state attorneys in the case.

"Hopefully this is a new day in the case and the direction of the attorneys involved in the case," she said.

Schuette, who just began his second four-year term as attorney general, said very few of the evidence-seeking subpoenas pursued by the state's 275 attorneys rise to his desk for approval.

"If I reviewed every subpoena the Department of Attorney General issued, everything would grind to a halt," Schuette said.

He said he bears responsibility for the mistake.

"I'm not throwing nobody under the bus, that's not what I do," Schuette told reporters.

In the future, though, Schuette said if state attorneys believe they need to compel journalists to disclose their notes or unpublished work product, the subpoena request will have to go through him.

The attorney general said the future use of subpoena power against journalists would remain "very infrequent, if at all."

Asked how many other times journalists have been subpoenaed under his watch since 2011, Schuette replied: "To the best of my knowledge, none."

NBCUNIVERSAL AGREES TO SETTLE 'SATURDAY NIGHT LIVE' INTERNS' LAWSUIT

Original Story: latimes.com

NBCUniversal and a group of former “Saturday Night Live” interns have reached an agreement to settle a class-action lawsuit contending the interns should have been paid for their work. An Atlanta Employment Lawyer is experienced in drafting employment agreements and negotiating employment contracts.

The $6.4-million settlement, subject to court approval, will be shared by thousands of "SNL" interns who worked in New York and California.

In documents filed with New York's Southern District Court, lawyers for the plaintiffs said Comcast-owned NBCUniversal had agreed to special bonuses for the litigants who led the class-action lawsuit, first filed in July 2013.

While those individuals would receive $5,000 to $10,000 each, other unpaid interns who qualify to be included in the settlement may see as little as $500 apiece.

The plaintiffs and their attorneys had contended that the internships involved doing work that would ordinarily be done by paid workers, by "improperly classifying them as non-employee interns exempt from federal and state minimum wage ... requirements." A San Antonio Business Lawyer has experience representing clients in employment disputes.

NBC declined to comment.

The original complaint involved New York interns Jesse Moore and Monet Eliastam, and grew to include plaintiffs from other states.

The interns asserted that the work they did on the late-night comedy paid them "no compensation or compensation at a rate less than the applicable minimum wage law," and that they were doing work for which wages were appropriate. A Houston Employment Lawyer is reviewing the details of this case.

The "SNL" interns lawsuit is one of several that have roiled the entertainment industry in New York and Los Angeles, where unpaid internships have long been a cost-saver for TV networks, movie studios, production companies, music labels and talent agencies -- and also a foot-in-the-door opportunity for ambitious Hollywood hopefuls.

The glamorous-sounding positions might involve assisting a filmmaker or record producer, but typically require the intern to make coffee, photocopy documents, run errands or make travel arrangements for company principals.

In similar court cases, interns have sued the 21st Century Fox subsidiary Fox Searchlight Pictures, Warner Music Group, Atlantic Records and the publishing houses Conde Nast and Hearst Corp.

CLASS-ACTION LAWSUIT FILED AGAINST GM OVER RECALL

Original Story: detnews.com

A national consumer rights law firm said Wednesday it has filed a class-action lawsuit against General Motors Co., alleging the company's recall of more than 20 million vehicles this year has hurt the GM brand and owners have suffered economic loss with lower resale values.

Hagens Berman Sobol Shapiro said it filed the lawsuit in federal court in the Central District of California. The suit, which alleges misrepresentation, concealment and non-disclosure of "piecemeal" safety defects," seeks compensation based on the car company's damaged brand perception. It cites some economic studies that show some select non-recalled GM cars and trucks have dropped in resale value.

The firm says that if certified, the class could represent as many as 15 million GM vehicle owners and GM's exposure could be more than $10 billion.

The class action would seek to include vehicles sold after GM's 2009 bankruptcy, between July 10, 2009, and April 1, 2014, and include anyone who owns, owned or leased a new or used GM vehicle during the period, as well as people who sold vehicles at a "diminished price."

The firm, in its lawsuit, says it has measured decreased value from $500 to more than $2,600 a vehicle.

"Had a purchaser of a 2010 Camaro known that the manufacturer had gone to such great lengths to hide safety defects on other GM cars, there is no way that purchaser would have paid full price," said Steve Berman, managing partner of Hagens Berman, in a statement. "The economic reality is that all GM owners are bearing the costs of GM's actions."

GM said it would not comment on pending litigation.

"However, and more broadly, I would say that many customers and independent analysts recognize that GM is delivering the strongest product lineup in its history," GM spokesman Greg Martin said in an email. "The result of this market recognition has been increased sales, transaction prices and residual values."

The Detroit automaker faces several dozen other economic loss related lawsuits filed by vehicle owners of cars that are part of its ignition switch recall. GM earlier this year recalled 2.59 million Chevrolet Cobalts, Saturn Ions and other small cars for faulty ignition switches that can move out of the "run" position while driving, turning off the engine and disabling power steering and air bags. GM has linked 13 deaths and 54 crashes to the defect.

Nutella Under Fire for False Advertising

Story first appeared on ABC.

It’s hard to imagine that there are people who might confuse Nutella–a gooey, chocolaty spread laden with sugar, palm oil and hazelnuts — with a health food. But apparently that’s exactly a San Diego mother of a 4-year-old daughter, did.

Last  February, she sued Ferrero USA, Inc., the makers of Nutella, for false advertising. In her suit, she claimed that she was shocked to learn that Nutella was the next best thing to a candy bar.  She argued that TV ads falsely promoted Nutella as a healthy breakfast option, while omitting the fact that a few tablespoons contains 200 calories, 11 grams of fat (3.5 grams saturated), and 21 grams of sugar. She sought an order preventing Ferrero from marketing Nutella as “healthy,” “balanced nutrition,” and said her goal was to pursue a class-action suit. However, the advertising in question does not mention the words "healthy", "nutritious" or "balanced" once.  The TV ads simply cast the spread as a quick, simple and easy breakfast alternative for busy families. The website however, does allude to Nutella being "healthy" and "balanced".

The mother got all sorts of flack for her apparent nutritional naiveté, but she still won.

The suit has been settled for $3.05 million, $2.5 million of which will be divided among consumers.  Anyone who bought Nutella between Jan. 1, 2008 and Feb. 3, 2012, (or Aug. 1, 2009 and Jan. 23, 2012 in California) can file a claim, say San Diego Class Action Lawyers.

Not that they’ll get rich:  Consumers can receive up to $4 per jar of Nutella that they purchased during the specified time period, with a maximum allowance of $20 per household. But Ferrero also agreed to modify the Nutella label and certain marketing statements about the product, create new television ads and change their website.

So now consumers can take their winnings, buy more Nutella, and know for sure they’re not eating tofu.


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