Law Firm News

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Law Firm News

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Kelley, Drye & Warren, LLP

Advertising Law Partners John Villafranco and Reed Freeman to Speak at the American Conference Institute's 2nd National Advertisers' and Marketers' Regulatory Summit: Industry Insights Straight From the Enforcers
John Villafranco and Reed Freeman, Partners in the Advertising Law Practice Group, will present at the 2nd National Advertisers’ and Marketers’ Regulatory Summit: Industry Insights Straight From the Enforcers in San Francisco on September 18-19, 2007.

Mr. Freeman will discuss privacy and other regulatory issues arising from third party relationships, including affiliate relationships. The session will also focus on setting up due diligence and monitoring programs for third parties in connection with advertising arrangements involving banner ads, e-mail, telemarketing, and other forms of marketing. Mr. Villafranco will deliver a presentation with Kerry O’Brien, a Staff Attorney for the Federal Trade Commission, on “Avoiding Government Scrutiny When Marketing to Wireless Devices”. The presentation will explore the evolution of the laws in the advent of new technology, and will explain the interplay between the FTC and the FCC. The session will include a discussion of regulatory rules and requirements for pre-recorded messages on cell phones, text messages, and mass e-mails, as well as new developments in the aftermath of the Brand X decision.

06-22-2007

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Kelley, Drye & Warren, LLP

Paul Rosenthal Listed in "Who's Who of Business Lawyers"
Partner Paul Rosenthal was awarded the distinction of being listed as one of the "Most Highly Regarded Individuals – Global" in the International Who's Who of Business Lawyers. Mr. Rosenthal was selected based on client recommendations.

06-22-2007

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Holland & Hart, L.L.P.

Lamont Jones Named General Counsel of USA Track & Field
Lamont Jones, an attorney in Holland & Hart LLP's Colorado Springs office, has been named General Counsel and Director of Business Affairs for USA Track and Field.

Jones will begin this new position on September 4, 2007. Until then, he will represent USATF as outside counsel at Holland & Hart. The firm will also continue to provide assistance to USATF in other legal specialty areas.

"Lamont is a very talented attorney whose leadership and commitment to exceptional service are apparent to both his peers and clients," said Wendy Pifher, partner in Holland & Hart's Colorado Springs office. "We hope to continue building on our relationships with Lamont and USATF and wish him the best of luck in this new role."

Jones' legal practice focuses on providing legal service to sports and entertainment industry entities. He is the former Executive Director of USA Boxing, the national governing body for Olympic-style boxing in the United States. He has counseled and represented leading promoters, managers, and boxers, including DiBella Entertainment, Alan Haymon, Rock Newman, Laila Ali, and Jermain Taylor.

"We are extremely pleased to welcome Lamont Jones to USA Track & Field," said CEO Craig Masback. "His legal experience with outstanding firms such as Holland & Hart and Quinn Emanuel, as well as his experience in the Olympic Family and the sports world, mark him as especially qualified for the position as USATF General Counsel. He is universally regarded as a professional of the highest quality and integrity with tremendous relationship-building skill that will serve him well at USATF."

06-22-2007

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Hagens, Berman, Sobol & Shapiro, L.L.P.

Lawsuit: Tax Payers Suffering From Fraudulent Service
A proposed class-action lawsuit was filed today against Jackson Hewitt Tax Service Inc. (NYSE: JTX), the nation's second largest income tax preparation service, claiming that the company knowingly defrauded customers in order to maximize profits.

Jackson Hewitt provides general income tax filing services and offers a "gold guarantee" for an additional fee that claims all prepared income tax returns will be filed accurately. If that isn't the case the company states they will bear any costs or penalties a customer receives from the Internal Revenue Service (IRS).

In 2004 and 2005, named plaintiff James Chapman sought Jackson Hewitt's tax services and purchased the company's "gold guarantee." Chapman was penalized by the IRS after Jackson Hewitt filed for an improper earned-income credit and despite its guarantee did not pay the IRS fines, the complaint alleges.

"Through our investigation we believe that Chapman's experience is very common among Jackson Hewitt's customers, and is part of an intentional scheme by the company in play across the country," said Steve Berman, lead counsel and managing partner of Hagens Berman Sobol Shapiro.

According to the complaint, when Chapman discovered he was being audited by the IRS, he attempted to exercise his right to protection under the "gold guarantee" but was denied any assistance from Jackson Hewitt. The tax preparation service instead accused him of providing false information, therefore forfeiting him from his protection. Jackson Hewitt held Chapman responsible for their mistake, and as such, Chapman was obligated to reimburse the IRS the complaint states.

The complaint against Jackson Hewitt goes on to say that the company did not take the proper steps to determine if Chapman was eligible for an Earned Income Tax Credit (EITC) which led him to improperly claim a refund of $4,500.

By law, earning an EITC requires that the tax payer claim a qualifying child as a dependent. In Chapman's case, the dependent did not meet all IRS criteria.

According to Berman, James Chapman was unaware that the child did not qualify as a dependent. The complaint states that Jackson Hewitt should have verified that the child met each of the IRS's criteria for determining dependency by obtaining documents and conducting an interview with the customer. Jackson Hewitt did neither, but did convince Chapman to purchase its "gold guarantee" for an additional fee of $39.00.

According to Berman, this isn't the first time Jackson Hewitt's business practices have been called into question: "They've been charged with facilitating tax fraud schemes numerous times and this sort of deception just can't continue."

The government charged Jackson Hewitt in Mich., Ga., and Illinois for similar abuses, citing that when the company knows there is chance of an audit, they recommend their "gold guarantee" and then claims that the customer is at fault, the complaint states.

"James Chapman trusted that his return was being prepared by an expert," Berman said. "Instead Jackson Hewitt blamed him for their intentional mistake and then fell through on their promise to protect him."

The complaint alleges that Jackson Hewitt violated the Consumer Fraud Act, is guilty of breach of contract, and unjustly enriched as a result of the unlawful collection of payments for their "gold guarantee."

The suit seeks full restitution for Jackson Hewitt's ill-gotten gains and punitive damages for those who were failed by the "gold guarantee."

Jackson Hewitt reports that it files 3.7 million tax returns a year, all prepared by trained individuals who know and adhere to United States tax laws. The service, which has nearly 6,000 offices and franchises in the country, promises to protect all customers if a tax return is prepared in incorrectly.

06-22-2007

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Hagens, Berman, Sobol & Shapiro, L.L.P.

Outraged Parents Lash Back at Thomas Manufacturer with a Lawsuit
Today a Chicago parent filed a proposed class-action lawsuit against RC2 (NASDAQ:RCRC), the 'Thomas the Train' toy manufacturer on behalf of all purchasers after learning the toys were manufactured using highly toxic lead paint putting children at a serious health risk.

According to the complaint filed in U.S. District Court in Illinois, RC2 distributed at least 1.5 million toys containing lead paint between January 2005 and June 2007. Among the products in question is the popular Thomas & Friends Wooden Railway.

Despite marketing its toys as 'Safe and Quality Playthings' RC2 distributed toys that had red and yellow surface paint containing lead, which is extremely toxic if ingested, the complaint states.

On June 14, 2007, the Consumer Product Safety Commission ordered a voluntary recall of the toys. Despite the recall, the company is not offering a reimbursement program for the dangerous toys, but will exchange the dangerous one for a new, ostensibly safer toy.

"We think RC2's response to this dangerous health issue is far short of what is necessary," said Steve Berman, managing partner of Hagens Berman Sobol Shapiro and the attorney representing the named plaintiffs. "There are legions of children that may have ingested lead paint from these toys, and we think the company should stand up to its responsibility to help identify these kids."

Named plaintiff Channing Hesse purchased a number of the lead-tainted toys for her toddler boys beginning in 2006 believing the toys were safe. Now, according to Berman, she wonders about the long-term health effects on her children.

"The biggest horror of this story is that parents know their toddlers often put toys in their mouths,' Berman noted. "Consumers trust that companies like RC2 will live up to the promise it makes in its advertising, promising "safe and quality playthings."

The complaint states that children under six years of age will absorb about 50 percent of the lead they ingest and exposure can lead to a wide range of health effects, including IQ deficits, learning disabilities, behavioral problems, stunted or slowed growth and impaired hearing.

"We know that lead poisoning affects children differently but experts agree that there is no such thing as a 'safe' level of lead exposure," said Berman.

RC2 states on its Web site "We understand that what matters most to parents is keeping their children healthy, happy and safe. What mattes most to us is helping parents to just that by offering products for every stage of your child's development…"

Since there is no effective treatment available for lead poisoning the CPSC has declared that "toys and other articles intended for use by children that bear lead-containing paint are banned hazardous products."

RC2 designs, produces and markets a wide range of infant and toddler toys and accessories including Soothie bottles, sippy and straw cups, feeding accessories and healthcare products and markets under The First Years and Lamaze brands, Thomas & Friends, Bob the Builder, Winnie the Pooh, John Deere, Nickelodeon and Sesame Street.

The filed suit claims RC2 violated the Illinois Consumer Fraud Act and Consumer Fraud Laws of other states, breached the implied warranty by selling goods that were unfit, is strictly liable for damages and acted negligently in product design.

06-22-2007

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Fredrikson & Byron, P.A.

Fredrikson Human Resources Consulting, Ltd. CEO Janice Downing Receives Minority Business Award
Janice Downing, CEO and Consultant with Fredrikson Human Resources Consulting, Ltd. (FHRC), was honored Thursday, June 21, 2007 at The Business Journal’s 2007 Minority Business Awards. Janice received the award as one of the Twin Cities top corporate executives who is making a difference in the human resources profession, FHRC, and the community-at-large.

Janice has over 20 years of experience as a human resources professional. She works with companies of all sizes and across industry lines providing a range of services including coaching, training facilitation, generalist support, and conducting investigations that identify the root cause of problems. She is known for her ability to identify what needs to be done from the human resources perspective and her ability to partner with clients to implement solutions that work. Janice is also a certified Professional in Human Systems Dynamics (PHSD).

06-22-2007

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Cravath, Swaine & Moore, LLP

Cravath Represents Jones Apparel In Its Sale Of Barneys
Cravath represented Jones Apparel Group, Inc. in the sale of its wholly owned subsidiary Barneys New York, Inc. to Istithmar for $825 million. The lawyers involved in this matter are partners Scott A. Barshay, William V. Fogg and George F. Schoen, associates Anita M. Sra and Scott D. Bennett and summer associate Michael A. Glick on corporate matters; partner Andrew W. Needham and associate Augustus N. Makris on tax matters; partner Eric W. Hilfers and associates Rolf Zaiss and Jin Hee Kim on executive compensation and benefits matters; and partner Kevin J. Grehan and associate Joyce Law on real estate matters. The deal was announced on June 22, 2007.

06-22-2007

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