New York Times Reports on NRA, Legal Advocacy
December 5, 2024 – The New York Times reports today, in part, about the National Rifle Association of America (NRA) and its “advocacy” in defense of its independence. As many of you know, in August 2020 the New York Attorney General (NYAG) filed a “dissolution lawsuit” against Brewer client the NRA.
Amid questions about the NRA’s legal strategy, firm partner William A. Brewer III noted that Brewer, with the support of NRA leadership, helped the Association successfully “confront a barrage of blue-state regulatory investigations,” including an effort by New York regulators to eliminate the group. The NYAG’s dissolution claims against the NRA were dismissed, and her bid for a court-appointed monitor was rejected by the court earlier this year.
Brewer told The Times:
“My firm handles bet-the-company, life or death advocacy. The NRA called and we helped them confront a barrage of blue-state regulatory investigations, a promised ‘corporate death penalty’ dissolution effort in New York, sweeping Russia-gate congressional inquiries, and a debanking effort condemned by the entire Supreme Court. Today, more than six years later, the NRA still stands – independent and free. We’re proud of that outcome, which we count as a win."
Read more here.
Brewer, Volokh Comment on First Amendment Case
November 26, 2024 – Firm Partner William A. Brewer and First Amendment scholar Eugene Volokh posted an update on the NRA’s First Amendment lawsuit against former New York financial regulator Maria T. Vullo. The report appears on REASON, as a segment of Professor Volokh’s blog, “The Volokh Conspiracy.”
In setting the stage for a successful appeal to the U.S. Supreme Court, the two write, “We were joined by the American Civil Liberties Union (ACLU), as the NRA appealed this ruling to the United States Supreme Court for the NRA. In a rebuke from a unanimous Court, Justice Sonia Sotomayor revived the NRA's claims this past June, emphasizing decades of precedent that "[a] government official cannot coerce a private party to punish or suppress disfavored speech on her behalf." Moreover, the Court said, Vullo's alleged conduct struck at the heart of this prohibition. In light of the Court's guidance on the First Amendment merits of the NRA's allegations, Sotomayor added, the Second Circuit was free to reconsider the issue of qualified immunity, i.e., whether Vullo's alleged violations were such that the NRA should be able to sue her individually for damages.”
Read the report here.
Law360 Reports on Lawsuit Brought by Actress Against Biote
November 25, 2024 – Law360 reports that Brewer client and commercial actress Cindy Latch accused the Biote hormone treatment company and its affiliates of improperly using her image and likeness in promotional materials promoting its therapy.
The article, “Hormone Therapy Co. Jilted Actress Over Image Use, Suit Says,” reports that Latch had an image use contract that automatically renewed from 2013 through 2021, but that Biote stopped paying her in 2021 as affiliates continue to her use her image to sell products. The complaint stated that, “Defendant blatantly misappropriated plaintiff's image and likeness—using her personal brand to sell products, cultivate customer relationships, and promote its corporate brand,"
William A. Brewer III, counsel for Latch, said in a statement her "currency is her personal brand."
"As is customary, she entered into an agreement to allow Biote to use her image and likeness," Brewer said. "Unfortunately, Biote continues to use plaintiff's personal brand while simultaneously denying her just compensation."
In addition to Brewer, Latch is represented by Brewer associates Joshua Harris and Nicholas Cacciarelli.
Read more here.
Biote Faces Claims for Misappropriating Name, Image or Likeness of Actress
Dallas, TX…November 21, 2024 – A lawsuit filed by Brewer, Attorneys & Counselors client and actress Cindy Latch in Dallas County court alleges that Biote Medical, LLC and its affiliated practitioners used Latch’s name, image, or likeness (“NIL”) to promote the company without Latch’s consent.
The case, which provides insights into often misunderstood NIL arrangements, is the latest in a string of high-profile lawsuits involving Biote and its executives. The complaint alleges that Biote continues to leverage Latch’s NIL to promote the company’s hormone therapy products without compensating her and in violation of her legal rights.
Filed on November 15, 2024, in Dallas County, the lawsuit alleges breach of contract, invasion of privacy by misappropriation, negligence, and violation of the Texas Deceptive Trade Practices Act, among other violations of various state acts protecting Latch’s right to control her NIL. Plaintiff seeks injunctive relief to restrain Biote, its affiliates, and practitioners from using her likeness to further the company’s business. The lawsuit also seeks damages in excess of $10 million.
Latch, a highly regarded actress, has worked as an infomercial host, appearing in commercials for many major brands, including Chase Bank, AT&T, and American Airlines. According to the complaint, Latch notified Biote that it was improperly using her likeness even though its right to do so had expired.
“Our client’s currency is her personal brand,” says William A. Brewer III, partner at Brewer and counsel to Ms. Latch. “As is customary, she entered into an agreement to allow Biote to use her image and likeness. Unfortunately, Biote continues to use Plaintiff's personal brand while simultaneously denying her just compensation.”
The lawsuit says, “Plaintiff, like all other actresses, does not allow her image and likeness to be used for free.” Latch seeks to ensure that Biote abides by its agreements and concludes that, “Without strict enforcement of her contractual agreements and privacy rights, Plaintiff knows that her brand loses its value.”
The lawsuit alleges that Latch filmed the Biote appearance in 2013. She entered into an Image Usage Contract with Biote, laying out terms that include the cost of use. The contract was automatically renewed, and Latch was paid from 2013 through 2021. According to the complaint, this is when the trouble began.
Latch alleges that in 2021, Biote began refusing to honor the contract terms, and yet continued to use her image and likeness in its corporate marketing. In March 2021, Latch sent Biote CEO Terry Weber an invoice and links to Biote-affiliated websites – to confirm the continued to use her image.
According to the lawsuit, two months later, in May 2021, Biote Chief Digital Officer Kevin Key told Latch, untruthfully, that Biote was no longer using her likeness and that any continued use was not the company’s responsibility.
Key wrote to Latch that, “You’ve been erased from existence inside the Biote walls, your image or any likeness thereof has been permanently deleted.”
In September 2024, Latch again contacted Weber and asked Biote to cease use of her image. As of today, several certified Biote providers and practitioners are still using Latch’s NIL to promote the sale of Biote’s products. Plaintiff plays a visible and starring role in Biote corporate marketing: the lawsuit includes links to footage of the commercial branding in question.
The lawsuit states that, “While in breach, Biote evaded Ms. Latch’s requests to remove her image from Biote affiliated website. Further, Biote refused Ms. Latch payment for the use of her image in accordance with the renewal terms of the contract.”
Miami Herald Reports on Lawsuit by BAC Client Lourdes Castillo Against Dori Foster-Morales
November 1, 2024 – The Miami Herald reports today on a lawsuit by Brewer client Lourdes Castillo against former Florida Bar President Dori Foster-Morales and her law firm. As reported, Castillo alleges that the firm’s legal malpractice, breach of contract and breach of fiduciary duty in connection with her divorce proceedings cost her more than $1 million.
“The complaint says it all: when our client’s divorce proceedings became complex and contentious, she retained defendants to protect her interests,” said Brewer partner William A. Brewer III. “Unfortunately, defendants were regularly unprepared for key court and arbitration events, caused Ms. Castillo to unwittingly waive substantial rights, and abandoned her during the most important time of her life.”
Brewer told the Herald, “defendants do not appear to dispute any of the claims and allegations against them – choosing instead to peddle a false narrative about fee arrangements involving a former client. Ms. Castillo is shocked by the conduct and the notion that a law firm would so blatantly disregard its professional obligations.”
Law360 Reports on Lawsuit Against Former Florida Bar President
October 21, 2024 — Law360 reports on a lawsuit by Brewer client Lourdes M. Castillo against Dori Foster-Morales and her law firm in an article titled, "Ex-Florida Bar Prez Accused of Malpractice in Divorce Case." As reported, Castillo is a former Foster-Morales' client who alleges Foster-Morales "breached her duty by dragging out the proceeding and causing damages stemming from a disagreement over a marital residence."
Filed in Miami-Dade County Civil Court, the four-count complaint accuses Ms. Foster-Morales, a former Florida Bar president of breach of contract, breach of duty, malpractice, and breach of implied covenant of good faith and fair dealing.
Brewer Managing Partner William A. Brewer III told Law360 that the defendants failed to protect his client's rights.
"The complaint says it all: when our client's divorce proceedings became increasingly complex and contentious, she retained defendants to protect her interests," Brewer said. "Unfortunately, they were regularly unprepared for key court and arbitration events, caused Ms. Castillo to unwittingly waive substantial rights, and abandoned her during the most important time of her life."
To read the full report (subscription required), click here.
Daily Business Review Reports on Lawsuit Against Ex-Florida Bar President
October 18, 2024 — The Daily Business Review reports on a lawsuit filed by Brewer, Attorneys & Counselors client Lourdes Maria Castillo against the law firm Foster-Morales and its founder, former Florida Bar President Dori Foster-Morales. According to the report, Castillo claims that, "despite Foster-Morales assuring Castillo of her skills, the defendant failed to exercise a reasonable standard of care and competence and breached fiduciary duties while representing her."
"The complaint says it all: when our client's divorce proceedings became increasingly complex and contentious, she retained the defendants to protect her interests," says William A. Brewer III, partner at Brewer and counsel to Castillo. "Unfortunately, they were regularly unprepared for key court and arbitration events, caused Castillo to unwillingly waive substantial rights, and abandoned her during the most critical time of her life."
Among other things, the report states that Castillo claims Foster-Morales "pressured her to accept a buyout of the marital residence from her ex-husband for half the property's value, threatening to withdraw as counsel if Castillo refused to accept an immediate settlement."
The report notes that Castillo rejected the offer. Castillo retained new counsel and secured a global settlement of all claims for nearly $1 million more than the defendants had urged her to accept.
Castilllo is seeking damages in excess of $1.1 million. Read more here.
Famed Texas Company AmeriTex Faces Lawsuit for Allegedly Falsifying Projections and Breaching Its Obligations to Equity Holder
Dallas, TX … October 3, 2024 – Brewer, Attorneys & Counselors announced today that its client, a former C-Suite executive of AmeriTex Holding, LLC (“AmeriTex”), the parent of AmeriTex Pipe & Products, filed claims against the company, its CEO Kevin Thompson, and director Thomas Murphy, alleging that key executives conspired to contrive financial information to avoid paying him “fair value” for his stake in the company. The filing also names the national accounting firm Marcum LLP and the law firm Kelly Hart & Hallman – both of which allegedly played a role in the claimed conspiracy.
Filed in the 456th Judicial District of Guadalupe County, Texas, on October 3, 2024, the claims lay bare the inner workings of a scheme to deny the executive, Christopher Podlasek, financial benefits to which he is entitled by creating phony projections which understate the multi-billion value of AmeriTex. According to the filing, defendants “manufactured a set of false financial projections (that wildly diverged from the projections AmeriTex recently used in the ordinary course of its business) to avoid paying Podlasek for his 1.5% equity interest.”
Founded in 2009, AmeriTex manufacturers water drainage products used in commercial construction and public works projects. The company rose to prominence as the largest player in Texas’ reinforced concrete pipe industry – which is key to the state’s exploding infrastructure needs and accounts for more than $1.2 billion in economic output. According to the company, its three campus operations are larger than all its competitors’ storage areas combined.
The lawsuit claims that the phony financial projections were created at the same time AmeriTex presented differing, bullish forecasts to the most significant credit rating agencies in the world, including S&P and Moody’s, multinational financial institutions Bank of America and U.S. Bancorp, and institutional investors when it raised $530 million in an October 2023 high yield bond offering. Months later, AmeriTex used the same bullish outlook to secure a new $155 million credit facility from Bank of America.
“Our client believes he was victimized by a scheme to avoid paying him ‘fair value’ for his stake in the company he helped build,” says William A. Brewer III, partner at Brewer and counsel to Mr. Podlasek. “Apparently, AmeriTex and its principals seek to keep financial benefits to which they are not entitled. Lost in the story of this Texas company is the way it attempted to devalue its worth and what it owes a former member of the company. It’s a disturbing tale for those in Texas who have witnessed AmeriTex secure state-funded projects, dominate key markets, and realize astronomical growth.”
The legal claims allege that AmeriTex recruited Podlasek to be Chief Financial Officer during a time of fiscal turmoil – to help it stabilize its back office and finance function, raise capital, and open new facilities. He did so successfully. During Podlasek’s tenure, AmeriTex grew its annual revenue from approximately $100 million to over $320 million. It also secured massive projects and embarked upon new markets – earning a glowing endorsement from Texas Governor Greg Abbott.