William A. Brewer III

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.”

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.

William Brewer Writes in The Dallas Morning News in Support of Releasing Texas School Accountability Ratings

September 15, 2024 -- The Dallas Morning News published a letter to the editor written by Brewer Partner and Brewer Foundation Future Leaders Program (FLP) founder William A. Brewer III calling for the release of Texas school accountability ratings.

The FLP is a is an award-winning public-private partnership that provides academic resources and leadership training to economically disadvantaged students in the Dallas Independent School District.  The Brewer Foundation on September 5, 2024, filed a petition in intervention in Travis County court on behalf of its Brewer Foundation Future Leaders Program (“FLP”), seeking the release of the Texas Education Agency (“TEA”) 2024 A-F accountability ratings for school districts and campuses.

On August 12, 2024, a Travis County judge blocked the scheduled release of the school ratings with a temporary restraining order after five school districts (located across West and South Texas) sued Texas Commissioner of Education Mike Morath in Pecos-Barstow-Toyah Independent School District, et al., v. Mike Morath.

The Foundation is represented by the Brewer Storefront – the community service affiliate of the national litigation firm of Brewer, Attorneys & Counselors.

The full text of the letter as it appeared in the Sunday edition of the newspaper is below:

Release school ratings

Re: “Why we released our schools’ ratings,” by Joe Carreón and Robert Selders Jr., Monday Opinion.

It is encouraging to see Dallas ISD School Board President Joe Carreón call for two items of importance in Texas education: accountability and transparency. Both are in short supply these days in public education — as several school districts recently brought a Travis County lawsuit to block the Texas Education Agency from releasing school ratings statewide. Meanwhile, DISD and a handful of other districts took the lead in releasing their preliminary ratings.

The accountability rating system is an A-F methodology that evaluates districts and schools. By definition, the system promotes awareness of educational challenges, helps identify best practices and instills confidence in parents and students. The ratings also spark interest and engagement — as we all work collectively to improve the educational system in our state.

Our law firm’s community service legal affiliate, Brewer Storefront, filed a petition to intervene in the lawsuit on behalf of our Brewer Foundation Future Leaders Program seeking the release of the ratings. The FLP is a public-private partnership that provides academic resources and leadership training to DISD students. We will argue the issue before the court to give a voice to schools, students and communities.

The plaintiff school districts face considerable challenges with student achievement, with between 51% and 73% of students not meeting grade level last year on STAAR exams. We need a system that identifies such problems and inspires the corrective actions necessary to improve schools. It is not only the Texas educational system that depends on this, but also the future generations it serves.

William A. Brewer III

Third Lawsuit Claims Biote CEO, Chairman, Aided by Law Firm, Conspired to Direct BioTE Holdings, LLC into SPAC Transaction to Enrich Themselves

July 16, 2024 – A third lawsuit filed by Brewer, Attorneys & Counselors alleges that company executives from Irving-based Biote Corp. – aided by the Cooley LLP law firm – breached their duties to plaintiffs by channeling the hormone therapy company into a value-destructive special purpose acquisition company (“SPAC”) transaction.

The lawsuit was filed by co-trustees of The Yosaki Trust and The Mioko Trust, Russell J. Miller and Mary Miller, on July 12, 2024, in the Court of Chancery of the State of Delaware.

The suit was brought against Biote CEO Teresa “Terry” Weber, Executive Chairman Marc Beer, Mary Elizabeth Conlon, Haymaker Sponsor III LLC, Steven J. Heyer, and Cooley LLP. Haymaker was the SPAC company that acted as the sponsor of the transaction and Cooley acted as outside counsel. The complaint states that the Cooley firm acted in aiding and abetting defendants’ breaches of their fiduciary duties.

The lawsuit alleges that “The Insider Defendants conspired to close this disastrous transaction to divert approximately $70 million of merger consideration to themselves and gain control of an enterprise they did not build. Plaintiffs respectfully request that the Court order Defendants to disgorge their ill-gotten gains.”

The filing follows a recent settlement with shareholder Marci Donovitz over similar issues.

As explained in the filing, a SPAC – also known as a “blank check company”—is a shell company set up by a sponsor that goes public without an operating business to raise funds, but with a plan to find a target private company with an operating business with which it would merge within a fixed period, usually two years.

“Our clients believe this case reveals a startling fact – company insiders worked with a blank check company and a law firm to enrich themselves and dilute the ownership interest of others,” says William A. Brewer III, partner at Brewer, Attorneys & Counselors, and counsel to plaintiffs.

The lawsuit alleges that plaintiffs’ ownership was diluted and devalued by the transaction, which enriched defendants at the expense of the legacy owners – plaintiffs bring the action to recover damages caused by the “disloyal fiduciaries, and those who aided them.”

As  publicly reported, Biote was a recent defendant in a separate lawsuit filed by Biote founder and Brewer client Dr. Gary Donovitz regarding the SPAC deal. As reported, in February 2024, Biote disclosed it agreed to buy back nearly $77 million of Dr. Donovitz’s stock to settle the matter. In July 2024, it was reported that Biote reached a $60 million settlement with another shareholder Marci Donovitz, also a Brewer client.