Dallas Business Lawyer Blog

Sketchers Agrees To Settle for 40M For Fraud and Misrepresentation Claims In Advertising - Dallas, Texas

 

One year ago, The U.S. FTC fined shoe manufacturer Skechers $40 Million over its ads for “Shape-Ups” shoes.  The shoes were marketed as being able to help users lost weight and tone the muscles in their lower bodies.  Skechers was banned from running the ads further and customers who bought the shoes could receive refunds from the FTC or join a class-action lawsuit against the shoe company.

“Skechers’ unfounded claims went beyond stronger and more toned muscles,” said David Vladeck, director of the FTC’s Bureau of Consumer Protection.  “The company even made claims about weight loss and cardiovascular health.  The FTC’s message, for Skechers and other national advertisers, is to shape up your substantiation or tone down your claims.”

This week, a federal judge approved the $40 million class-action settlement between Skechers and “Shape-Ups” customers.  According to an Associated Press report on the lawsuit, more than 520,000 people can claim up to $80 for a pair of “Shape-Ups,” $84 for a pair of “Resistance Runner” shoes, $54 for a pair of “Podded Sole” shoes, and $40 for a pair of “Tone-Ups.”  $5 million of the settlement was awarded to the lawyers in the case.

For more information aobut fraud in Texas, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

 

 

Dallas To Settle Sexual Harassment Suit Brought By Former Rescue Official - Dallas, Texas

More than three years after Leanne Siri, once the top-ranking female in Dallas Fire-Rescue, sued the city for retaliation and discrimination, the end of the litigation is near: On Wednesday the Dallas City Council will vote to settle the case for $390,000.

That’s according to the council’s briefing agenda, which offers a very brief summation of years’ worth of investigations, rulings and federal legal filings that involved three other female fire department officials with whom the city has already settled for a total of $255,000. The city, which admitted no wrongdoing in the cases involving, among others, former Dallas Fire Chief Eddie Burns and City Manager Mary Suhm, has also paid out more than $1 million in outside legal fees. 

For more information about sexual harassment, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

Cisco hit with $70M verdict for Fraud and Misrepresentations - Dallas, Texas

Cisco Systems Inc. was on the short end of a $70 million verdict by a federal jury in Delaware that said the California-based tech giant was guilty of "fraud by concealment" in a short-lived partnership with New York-based XpertUniverse Inc.

Cisco, which has a large campus in Richardson, also violated two of XpertUniverse's patents, the jury said in awarding additional damages of about $34,000.

A Cisco spokeswoman told the Wall Street Journal that the verdict surprised the company and said Cisco was confident that its conduct "was appropriate throughout our relationship with XpertUniverse."

XpertUniverse's complaint centered around plans to integrate its business technology of locating and interacting with experts over the Internet with Cisco's routing technology, the Journal said.

According to the complaint, Cisco (Nasdaq: CSCO) told XpertUniverse that it didn't have the resources to continue the joint project, but later introduced an offering of its own called "Expert on Demand," the same name used by XpertUniverse for its product, the Journal said.

For more information about fraud and misrepresentation, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

Jury awards sales rep on age discrimination claim - Dallas, Texas

A jury awarded $668,019 to a Dell technical sales representative who claimed that he was fired because of his age. In 2008, William Wise Jr., then 61, was fired from his Austin job. The plaintiff worked for the company for 11 years. Two years prior to his termination, he earned "Circle of Excellence" awards. Wise argued that although he was informed he was being released due to his missed sales quota, no other sales representative had been terminated for such a reason. Yet there were a number of sales people who did not meet their targets. When Wise was put on a performance action plan in March 2006, neither the plaintiff's managers nor the human resources department followed the company procedures, he claimed.

For more information about age discrimination claims go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

Tiffany sues Costco over Trademark Infringement and Deceptive Practices - Dallas, Texas

 

A Tiffany & Co. subsidiary is suing Costco, claiming the wholesale club operator has been selling engagement rings wrongly labeled "Tiffany" rings.

The high-end jeweler filed lawsuit in U.S. District Court in New York on Thursday.

Tiffany and Company alleges trademark infringement, counterfeiting, unfair competition, injury to business reputation, false advertising and deceptive business practices. The company says the rings are not in fact Tiffany rings, nor are they in any way properly associated with Tiffany.

The retailer said that a customer alerted Tiffany in November to the sale of what was promoted on in-store signs as "Tiffany" diamond engagement rings at a Costco store in Huntington Beach, Calif.

Tiffany immediately launched an investigation and said that it learned that Costco has been selling different types of rings for many years identified as "Tiffany" rings, without the company's knowledge. The jewelry retailer said that Costco led its customers to believe they were buying authentic Tiffany products at significant discounts.

"We now know that there are at least hundreds if not thousands of Costco members who think they bought a Tiffany engagement ring at Costco, which they didn't," Jeffrey Mitchell, Tiffany's counsel in the case, said in a statement. "Costco knew what it was doing when it used the Tiffany trademark to sell rings that had nothing to do with Tiffany. This is not the kind of behavior people expect from a company like Costco, and this case will shed a much needed light on this outrageous behavior."

A representative for Costco Wholesale Corp. in Issaquah, Wash., could not be reached immediately for comment. Costco is the world's largest wholesale club operator with more than 600 sites worldwide.

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Company hit with $5.8M verdict on discrimination claim- Dallas Texas

 

 

An employee who was fired after a manager at El Paso Electric Co. threatened to kill him was awarded $5.8 million on his discrimination claim. In 2007, Mark Duncan, a benefits supervisor, was fired two days after the company's human resources manager threatened him. Duncan, who is white, claimed the company feared the manager, who is Hispanic, would file a discrimination suit if fired, so the company fired both of them. Duncan maintained that when he asked what he specifically did wrong, the vice president refused to provide details. The jury awarded $5 million in punitive damages.

 

For more information about employment discrimination, go to www.businesslawyerdallastexas.com

Woman Raped By Employees of Cable Company Wins At Trial - Dallas, Texas

A judge awarded $1.5 million to a woman who alleged she was raped by two cable television workers in her home. In 2008, Mario Aquila and Jose Costillo, employees of Reliable Inc., a subcontractor of Time Warner Cable, were sent to Mildred Phillips' apartment in Inglewood. Phillips claimed an argument ensued over the manner in which her cable was being installed, and the men raped her before fleeing the apartment. They were later arrested, but criminal charges were dismissed. Phillips then sued Aquila and Castillo. She also sued Reliable, but it settled for $20,000. Castillo defaulted at trial. Aquila's counsel argued that Phillips was promiscuous. The judge found both men liable for sexual assault and battery and awarded Phillips $750,000 from each.

For more information about business or employment law, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

Employee Wins For Wrongful Termination Claim - Dallas, Texas

A jury awarded $606,046 to a deputy constable who claimed that he was fired in retaliation for giving grand jury testimony. In 1997, Armando Gonzales testified that Dallas County Chief Constable Aurelio Castillo ordered him to solicit campaign contributions from bail bond companies by threatening to not arrest bail jumpers if the companies didn't comply. Gonzales was fired two weeks later. Castillo was convicted in 2000 of accepting an illegal campaign contribution. Defense counsel argued that Gonzales was properly terminated after it investigated an excessive force claim brought against him.

 

For more information about business law go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

 

City Settles With Minority Workers For Hostile Work Environment - Dallas, Texas

The city of Dallas agreed to pay $400,000 to 16 minority workers with the Water Utilities Department who claimed they faced discrimination and retaliation in a hostile work environment. The black, Hispanic and Asian American workers claimed they were subjected to racial slurs, graffiti and threats. They claimed that nooses and Confederate flags were put on display. When they complained they faced discipline, they said. They also claimed that they were passed over for promotion in favor of less qualified white employees. The city claimed that it responded appropriately to the incidents cited by the employees and took measures to insure they were not repeated.

For more information about racial discrimination and hostile work environment, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com

Equifax Found To Violate Fair Credit Reporting Act - Dallas, Texas

A jury determined that Equifax Information Services must pay $1.02 million to a leukemia patient who blamed the credit industry for identity theft that almost prevented him from paying for life-saving medical treatment. In 2007, Eric Robert Drew was hospitalized with terminal leukemia, when a hospital worker stole his identity and repeatedly procured credit cards. Drew said numerous banks, credit issuers and other credit agencies, including Equifax, refused to cancel the accounts and correct the bad credit report entries, despite the knowledge that this was necessary for Drew to pay for his treatment. Drew sued Equifax and several others for violations of the Fair Credit Reporting Act and other consumer protection laws. Most of the defendants settled or were dismissed prior to trial. Equifax denied the allegations, but the jury found that it willfully violated the FCRA.

For more information about business law, go to www.businesslawyerdallastexas.com or call 214-855-0034 or jonathan@theleblanclawfirm.com