Ohio State, 162 Survivors Finalize $40.9 Million Settlement in Strauss Case

“The Ohio State University announced today details of a $40.9 million settlement reached with 162 survivors in 12 lawsuits related to sexual abuse by Richard Strauss, a university-employed physician from 1978 to 1998 who died in 2005,” was reported in Ohio State News.

“An independent investigation launched by the university determined in 2019 that Strauss abused students during his time at Ohio State and the university administration failed to appropriately respond at the time.”

“In March, Ohio State announced a monetary settlement with nearly half of the individuals who brought claims against the university related to Strauss. All have now signed on to the terms of the settlement.”

“Ohio State continues to participate in good faith in the mediation process with the survivors involved in the remaining lawsuits, and remains committed to a resolution with plaintiffs, including a monetary resolution.”

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Regulators Approve $1.9 Billion Settlement With PG&E, But Back Off on Major Fine

“The state Public Utilities Commission on Thursday approved a $1.9 billion settlement with PG&E that allows it to get credit for wildfire prevention spending while at the same time escape being fined $200 million over regulatory violations stemming from two years of massive wildfires,” reports Jaxon Van Derbeken in NBC Bay Area’s Investigative.

“The unanimous vote came after PG&E challenged the findings of a regulatory judge who urged that the company be fined on top of having to pay a total of $1.9 billion in improvements and upgrades.”

“In advocating for the no-fine deal, Commissioner Clifford Rechtschaffen reminded his colleagues about the devastation associated with 15 fires tied to the utility’s equipment in 2017 and 2018. ‘For the victims of the fire … the damage, the pain and the trauma is ongoing,’ he said.”

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Chipotle’s Record $25 Million Fine Sends Tough Message as the Restaurant Industry Begins Reopening

“Chipotle Mexican Grill Inc. agreed to pay a $25 million criminal fine, the largest ever in a food safety case, to resolve criminal charges related to the company’s involvement in foodborne illness outbreaks that sickened more than 1,100 people between 2015 and 2018, the Department of Justice announced last week. This news is a wake-up call for the nation’s restaurant industry as it prepares to reopen this week in several states amid concerns about employee and customer safety. The message is simple: despite the burdens of reopening under ‘social distancing’ guidelines, this is no time for restaurants to cut corners on food safety, particularly with food inventories that pre-date the shutdown and working capital stretched to the breaking point,” warns Samuel Lanier Felker and Joel R. Buckberg in Baker Donelson’s News & Events.

“The Newport Beach, California-based company agreed to a three-year deferred prosecution agreement (DPA) that will allow it to avoid conviction for adulterating food in violation of the Federal Food Drug and Cosmetic Act, if it complies with an improved food safety program.”

“According to the facts recited in the DPA and confirmed by Chipotle, the company was implicated in at least five foodborne illness outbreaks between 2015 and 2018 connected to restaurants in the Los Angeles area, Boston, Virginia, and Ohio. These incidents primarily stemmed from store-level employees’ failure to follow company food safety protocols at company-owned restaurants, including a Chipotle policy requiring the exclusion of employees who were sick or recently had been sick. As set out in the DPA, some store-level Chipotle employees from the 2015 to 2018 time period reported inadequate staffing and food safety training. Employees also reported pressure to work while sick, even though that was against Chipotle’s sick-exclusion policies.”

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Lawyer Likely Can’t Defend Clients on Related Criminal Charges

“A New York lawyer representing two clients in separate but related criminal matters faces a ‘likely unwaivable’ conflict of interest based on the facts presented, a recent state bar association opinion said,” reports Melissa Heelan Stanzione in Bloomberg Law’s The United States Law Week.

“A conflict of interest exists for a lawyer in this situation if it will involve the lawyer in representing opposing interests, or that there’s a ‘significant risk’ that the lawyer’s professional judgment will be adversely affected by the lawyer’s own interests, the April 22 opinion said.”

“The lawyer asked the bar about ethical implications of the dual representation.”

“The clients are in a relationship, and one is charged with a crime where the other was a victim, the opinion recounted. But the alleged victim was intoxicated when the event occurred, and was arrested for driving while intoxicated after the alleged perpetrator was arrested, it said. And each is a witness in the others case, with the alleged victim wishing to testify in favor of the perpetrator, it said.”

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Attorney General Ellison Shuts Down Fraudulent Student-Loan Debt-Settlement Company

“Minnesota Attorney General Keith Ellison announced this week that his office has obtained a settlement that requires a California student-loan debt-relief company that illegally collected fees from customers and misrepresented its services to consumers to cease operating in Minnesota and provide full refunds to its Minnesota consumers,” reports International Falls Journal.

“Among other things, Student Education Center — a company based in Newport Beach, Calif. — falsely promised consumers student-loan forgiveness, when only the federal government can forgive federal student loans. It told consumers it would take over their student-loan payments, when all it did was enroll consumers in federal repayment programs that consumers can enroll themselves in for free, then pocketed both initial and monthly fees for doing so. It also collected its fees up front before performing the promised services, which is illegal under Minnesota law regulating debt settlement services. Additionally, Student Education Center was operating without registering as a debt-settlement service provider, as required by Minnesota law.”

“The settlement, filed in Ramsey County District Court, requires Student Education Center to immediately pay the State $122,019.18 — the full amount it has collected but not otherwise refunded its Minnesota customers.”

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Federal Authorities Charge Santa Rosa Attorney with Conspiring to Sell Medical Masks at Inflated Prices

“Federal authorities in New York have charged a Santa Rosa attorney with conspiring to sell one million protective masks in short supply during the coronavirus pandemic at a steep markup, in violation of the Defense Production Act invoked by President Donald Trump,” reports Kerry Benefield in The Press Democrat.

“Kent Bulloch, 56, of Santa Rosa, and William Young Sr., 64, of Arizona, are accused in a criminal complaint unsealed Tuesday in Brooklyn of attempting to sell the masks at prices inflated by as much as 50%, according to a complaint filed by federal prosecutors in New York. Bulloch was arrested in Santa Rosa on Monday night.”

“Bulloch and Young allegedly sought investors to sell one million KN95 respirator masks at double or triple their purchase price, according to the complaint. Bulloch allegedly tried to conceal the markup and the scheme by creating an escrow agreement that falsely stated the profits would not exceed the federal limit of 10%, according to the complaint.”

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Minor Errors Axe Judgment Lien

“Based on a mistake about when a Cook County default judgment became final — plus a 60-cent discrepancy between the amount of the judgment ($238,007.61) and the amount listed in a memorandum of judgment ($238,007.01) that the plaintiffs filed as a lien on the defendant’s real estate in Will County,” reports Steven P. Garmisa in Chicago Daily Law Bulletin’s Courts & Cases.

“Leonard and Cecilia Urban sued Joseph L. Blewitt in Cook County. On August 6, 2003, a default judgment was entered against Blewitt, in favor of Leonard, in the amount on $238,007.61. And on March 29, 2004, a Cook County judge (1) denied Blewitt’s motion to vacate and (2) revised the judgment to include Cecilia. As the judge explained: ‘The order of August 6, 2003, was considered by the court at that time to adjudicate all claims, therefore the order will be considered to include the non-injured spouse (Ms. Urban) nunc pro tunc to August 6, 2003.'”

“A Rule 23 order from the 1st District (a) affirmed the order that denied Blewitt’s motion to vacate (b) ruled that the judge erred in adding Cecilia nunc pro tunc and (c) concluded that the March 29, 2004, order was the final judgment that resolved all the claims of all the parties — with a money judgment for Leonard and no award for Cecilia.”

“On Sept. 16, 2004, the Urbans filed a memorandum of judgment in Will County that listed Leonard and Cecilia having scored a default judgment of $238,007.61 on Aug. 6, 2003. But on Feb. 28, 2006, the Urbans filed a memorandum of judgment that said the default judgment was $238,007.01.”

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Former FBI Agent Arrested in Lafayette in Bribery Case

“A retired FBI agent arrested Friday near his home in Lafayette accepted more than more than $200,000 in cash bribes and gifts in exchange for funneling sensitive information to Armenian organized crime,” reports Bay City News.

“Babak Broumand, who retired from the FBI last year after 20 years as a special agent, was arrested by special agents with the FBI and Department of Justice Office of the Inspector General.”

“Broumand was charged in a criminal complaint Tuesday in United States District Court in Los Angeles, with one count of conspiracy to commit bribery of a public official.”

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Lawyer Who Took Off Pants at Security Checkpoint Fights Bid to be Ousted from Representing Clients

“Atlanta lawyer Robert Ward acknowledges that he took off his pants at a security checkpoint at a federal courthouse in Tampa, Florida,” reports Debra Cassens Weiss in ABA Journal’s Trials & Litigation News.

“In an April 13 opposition, Wyndham noted that U.S. District Judge Charlene Edwards Honeywell ordered Ward Feb. 21 to show cause why she shouldn’t revoke his pro hac vice status for taking off his pants.”

“The Jan. 30 incident was precipitated when a court security officer told Ward that he would have to take off his belt for the metal detector. Ward replied that lawyers shouldn’t have to take off their belts. Ward then took off his pants, threw them in the bin and walked through the metal detector.”

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Ann Arbor Council Votes 10-1 to Increase Legal Contract in Gelman Case to $592,500

“Ann Arbor officials this week again delayed voting on a resolution to seek a federal Superfund cleanup of the Gelman dioxane plume,” reports Ryan Stanton in mlive’s Ann Arbor.

“City Council voted unanimously Tuesday morning, April 21, to postpone the matter until July 6, while city officials wait to see how legal negotiations with polluter Gelman Sciences play out in Washtenaw County Circuit Court.”

“Council also voted 10-1 to approve a fifth amendment to the city’s legal services agreement with Bodman PLC, which is representing the city in litigation against the polluter.”

“The contract is being increased by another $92,500, adding to $500,000 previously approved.”

“’The amount of time spent on recent negotiations, including the exchanges of drafts, court conferences, and providing advice as needed, has been more time consuming than anticipated,’ Assistant City Attorney Abigail Elias wrote in a memo.”

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Lawyer Arrested for Allegedly Threatening Kentucky Governor Over Lockdown

“A Louisville lawyer was arrested after allegedly threatening the life of Kentucky Gov. Andy Beshear while criticizing the state’s coronavirus quarantine measures,” reports Vincent Barone in the New York Post.

“James Troutman, 53, faces a misdemeanor charge of third-degree terroristic threatening over comments he made against the governor on Facebook under the account of ‘Greg Troutman,’ which police traced back to the lawyer, according to the local outlet WDRB.”

“Police said Troutman jumped into another conversation on April 20 relating to the planned protests against Kentucky’s stay-at-home order.”

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Federal judge approves $5B Facebook-FTC settlement over Cambridge Analytica

“A federal judge on Thursday approved the $5 billion Federal Trade Commission (FTC) fine that Facebook agreed to pay last year over privacy violations stemming from the Cambridge Analytica scandal,” reports Chris Mills Rodrigo in The Hill.

“The settlement — reached in July and the largest in the FTC’s history — came after a lengthy investigation into Facebook.”

“The $5 billion agreement was criticized by lawmakers and other critics of Facebook who said the amount was too small given Facebook’s massive profits, and that it let the platform off too easily.”

“Several advocacy groups, including Public Citizen, Common Sense Media and the U.S. Public Interest Research Group, had tried to stop the courts from approving the settlement.”

“U.S. District Court Judge Timothy Kelly, a Trump appointee, acknowledged the concerns in his opinion Thursday, saying they call into question laws governing technology companies.”

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Big Banks Accused of Favoring More Lucrative Small Business Loans in Coronavirus Program

“Four of America’s biggest banks have been accused of harming thousands of coronavirus-hit small businesses by unfairly prioritizing emergency loan requests from large customers to earn fatter fees,” reports Matt Egan in CNN Business.

“BAC, Wells Fargo, JPMorgan Chase and US Bank were sued Sunday for allegedly failing to process forgivable loans in the $349 billion Paycheck Protection Program (PPP) on a first-come first-served basis.”

“Each bank ‘concealed from the public that it was reshuffling the PPP applications it received and prioritizing the applications that would make the bank the most money,’ each of the four lawsuits said.”

“As a result of this ‘dishonest and deplorable behavior,’ the lawsuit said thousands of small businesses ‘were left with nothing’ when PPP ran out of money earlier this month.”

“The legal action was brought by a range of California small businesses, including a frozen yogurt shop, law firms, an auto repair company and a cybersecurity firm.”

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Melbourne Defense Lawyer Accused of Running Prostitution Ring

“A 71-year-old criminal defense lawyer in Melbourne, Florida, was arrested Saturday for allegedly using his legal practice to recruit clients into a prostitution ring that he ran out of his home,” report Law.com, the Orlando Sentinel, the Miami Herald and WESH.

“The lawyer, John Gillespie, was arrested in a sting operation.”

Gillespie ran unsuccessfully to be the Orange-Osceola public defender as a Republican in 2004.’

The Orlando Metropolitan Bureau of Investigation cited evidence that Gillespie ‘would initiate women he represented on criminal charges into prostitution or exchange sex acts for legal fees.'”

“The agency began investigating after a former law firm employee said she had helped Gillespie recruit women and girls into sex trafficking, according to an arrest warrant cited by the Orlando Sentinel.”

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Ohio Lawyer Who Took $128K From Mentally Ill Client Suspended

“An Ohio attorney who stole from and overcharged a client nearly $129,000 was indefinitely suspended by the state’s highest court,” reports Melissa Heelan in Bloomberg Law.

“The Dublin, Ohio, lawyer first began working for the client, who suffered from mental illness, alcoholism, and depression, in 2015, the court said. His then-firm agreed to represent her pro bono for $20 per month. But Buttars entered into a separate written fee agreement, agreeing to represent her “in any capacity” for an hourly rate of $250.”

“The client told Buttars that even though she couldn’t pay him right away, she was going to receive ‘a substantial inheritance’ from her mother when she passed away, the court said.”

“After the mother died in 2015, Buttars—who soon after formed his own firm—administered the estate and did various nonlegal, personal jobs for the client, according to the court. He helped her look for a new apartment, mowed her lawn, and went shopping for her. He sometimes charged his hourly rate of $250 and at other time the paralegal rate of $150 per hour, the court said.”

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Litigation on Musk’s Tweets to Move Forward

“The Unites States District Court for the Northern District of California recently found that 10b-5 litigation regarding Elon Musk’s tweets could move forward after reviewing a motion to dismiss in In Re Tesla Inc. Securities Litigation,” discusses Steve Quinlivan in Dodd-Frank’s Litigation blog.

“Mr. Musk famously tweeted ‘Am considering taking Tesla private at $420. Funding secured.’ Mr. Musk later responded to comments related to his tweet and also posted new tweets on the subject. Tesla’s Senior Director of Investor Relations received three e-mails inquiring about Mr. Musk’s tweets. One response given was ‘I can only say that the first Tweet clearly stated that ‘financing is secured.’ Yes, there is a firm offer.'”

“The Court rejected the defendants’ argument that the tweet was not false and misleading. Among other things, the Court found even if the entire tweet is deemed an opinion about the future funding, that would not insulate the tweet from scrutiny; a statement of opinion can be deemed misleading if it conveys facts, and this is especially so when the opinion contains highly specific facts—e.g., here, the specific price of $420. Because Mr. Musk, the CEO of Tesla, included the highly-specific price of $420 at which shares would be bought for the going-private transaction, and because his tweet followed with “funding secured,” a reasonable investor would have interpreted it as something more than a speculative amorphous opinion about future possibilities. Instead, it can be read as implying a more concrete state of affairs.”

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3M Files Second Lawsuit To Combat COVID-19 Price Gouging

“After a public dispute with the White House about exporting N-95 masks, 3M is turning to trademark law to help combat impressions that it is price-gouging at home … reported earlier this week on 3M’s lawsuit against Performance Supply, a New Jersey company that offered to sell 3M masks to New York City for 500-600% of 3M’s list price. Shortly after filing that complaint, 3M also sued a Utah company for similar activities in the Eastern District of California,” reports Kimberly Maynard in Frankfurt Kurnit Klein + Selz’s IP & Media Law Updates.

“In the second complaint, 3M alleges that Rx2Live, LLC contacted Community Medical Centers, Inc. (“CMC”), a healthcare provider based in Fresno, offering to sell 3M-branded N95 masks at 400-500% of the 3M list price (with a minimum purchase of 10 million masks).  Rx2Live invoked the 3M name multiple times, stating that the masks were “direct from 3M” and that “3M requires payment in full before order can be placed.”  According to 3M, neither of these statements is true.  The case is 3M Company v. Rx2Live, LLC, 1:20-cv-00523.”

“As with the Performance Supply lawsuit, 3M does not allege that Rx2Live sold counterfeit products, placed the 3M marks or a colorable imitation thereof on its own masks, or sold “gray market” goods (i.e., 3M-branded products manufactured for sale outside the U.S. and improperly imported and sold in the U.S.).  It is unclear from the complaints if the defendants are reselling authentic 3M masks they previously purchased, albeit at an unconscionable price.  While price-gouging is illegal, it is not prohibited by the Lanham Act.  In fact, the first-sale doctrine expressly allows consumers to resell unaltered, branded products and to advertise them as such.”

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Equifax To Pay Mass. $18.2 Million In Settlement, AG Healey Announces

“Equifax will pay Massachusetts $18.2 million and change its security practices as part of a settlement between the credit reporting agency and the state stemming from a major 2017 data breach, Attorney General Maura Healey announced Friday,” reports Chris Lisinski in WBUR’s Bostonomix.

“Healey sued Equifax shortly after the company’s alleged missteps exposed personal data, including Social Security numbers and driver’s license numbers, of 147 million Americans and 3 million Massachusetts residents. The attorney general said the company also failed to notify consumers in a timely manner once the breach occurred.”

“Her office reached its own settlement with Equifax about nine months after declining to join other states in July 2019 agreements, which the attorney general told reporters allowed Massachusetts to secure a larger payment and more strict conditions on the company.”

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Coronavirus Class Actions—Part Two—A Few Weeks Later

“…numerous COVID-19 related class actions have been filed throughout the country in various different spaces—consumer, mass tort, securities, labor & employment, and banking and privacy. These newly filed complaints (and some corresponding opinions) provide us valuable insight into how class action plaintiffs will proceed with outbreak-related claims, and allows us the opportunity to further analyze the viability of putative class action complaints. This post will address the first COVID-19 certification decision and include an analysis of the two most active areas of COVID-19 class actions: mass torts and consumer protection,” write Bethany Gayle Lukitsch, Kamran B. Ahmadian and Drew Gann in McGuireWoods’ In The News.

“While the majority of these cases will take weeks or months (particularly given the court shutdowns that have occurred throughout the country) to progress to the class certification stage, surprisingly we have already seen the first COVID-19 class certified. ”

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$4M Verdict Over Doctor’s Failed Attempts to Insert Catheter

“West Palm Beach attorneys William D. Zoeller and Michael V. Baxter of Schuler Halvorson Weisser Zoeller Overbeck obtained a $4 million jury verdict for the family of a 72-year-old man who died after his doctor tried to insert a catheter 14 times—for a procedure the plaintiffs alleged could have waited,” reports Raychel Lean in News.law’s Civil Plaintiff.

“But not all the facts were on their side. Gerald Sanford had a history of mitral valve regurgitation, a heart problem that can cause a back flow of blood. He also had an 80% to 90% blockage in one of his arteries, which the defense said warranted surgery to unclog.”

“Zoeller and Baxter argued that wasn’t as bad as it sounds because Sanford wasn’t experiencing symptoms, such as chest pain or shortness of breath. They claimed the risks of opening that artery outweighed the benefits.”

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