Despite Injunction, Biote Continues to Misappropriate Name, Image or Likeness of Actress Cindy Latch

December 10, 2024, Dallas, Texas – A Dallas County court entered an injunction today prohibiting Biote Medical, LLC and its affiliated practitioners from using the name, image, or likeness (“NIL”) of actress Cindy Latch without her consent. Brewer, Attorneys & Counselors sought the injunction after filing a lawsuit on behalf of Latch regarding Biote’s repeated unauthorized use of Latch’s NIL. 

Entered by the 101st Judicial District, Dallas County, Texas, Judge Staci Williams finds that Latch made a threshold showing that she “suffers immediate and irreparable injury” due to Biote’s misappropriation of her NIL.

During a hearing on December 9, Latch introduced evidence that dozens of practitioners continue to misappropriate her NIL on their websites even after her contract with Biote ended in February 2021. These sites are engaged in the continued “impermissible use” of her image and likeness. The order states, “…the Court finds the existence of a wrongful act on behalf of Biote, and the presence of imminent harm flowing from Biote’s invasion of Plaintiff’s privacy by misappropriation of Plaintiff’s image.”

The court previously entered a Temporary Restraining Order on November 25. However, since that date, Biote has failed to protect Latch’s personal brand or compensate her for Biote’s continued unauthorized use of her NIL. With Latch as a centerpiece of Biote’s national marketing effort, the company recently reported annual revenue of approximately $200 million.

“The evidence continues to mount in support of Ms. Latch’s claims:  Biote and its affiliates continue to misappropriate Latch’s name, image or likeness in violation of her rights,” says William A. Brewer III, counsel to Ms. Latch. “This case is a beacon for those victimized by the cavalier misappropriation of their personal brand.”

The Lawsuit

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. Latch seeks injunctive relief as well as damages exceeding $10 million.

Latch, a highly regarded actress and infomercial host, has appeared in commercials for many major brands, including Chase Bank, AT&T, and American Airlines.  According to the lawsuit, “Plaintiff, like all other actresses, does not allow her image and likeness to be used for free.” Latch asserts that, “[w]ithout strict enforcement of her contractual agreements and privacy rights, [Latch] knows that her brand loses its value.”

The lawsuit alleges that Latch filmed her Biote commercials in 2013. At that time, she entered into an Image Usage Contract with Biote detailing the cost of using her NIL. The contract automatically renewed annually and Latch was paid from 2013 through 2021. 

According to Latch, in 2021 Biote refused to honor the contract terms, while continuing to use her image and likeness in its national corporate marketing. In March 2021, Latch sent Biote CEO Terry Weber an invoice, as well as links to Biote-affiliated websites, confirming Biote’s continued use of her image. Two months later, Biote Chief Digital Officer Kevin Key told Latch that Biote was no longer using her likeness and that any continued use by others was not the company’s responsibility.  

In September 2024, Latch again contacted Weber and asked Biote to cease use of her image. However, in blatant disregard of Latch’s repeated requests, she continues to play a starring role in Biote corporate marketing to this day. During the December 9 hearing, Latch introduced exhibits that illustrate the national reach of these violations.

The lawsuit states that, “While in breach, Biote evaded Ms. Latch’s requests to remove her image from Biote affiliated websites. Further, Biote refused Ms. Latch payment for the use of her image in accordance with the renewal terms of the contract.”

Brewer confirmed that at least 75 practitioners continue to use Latch’s NIL in promotional materials. This continues despite the TRO issued in November.

“We suspect there could be thousands of Biote partners continuing to use her image and likeness,” says William Brewer. “Our client’s brand is her currency, and she will pursue all remedies to which she is entitled.” 

In addition to Mr. Brewer, Latch is represented by Brewer associates Joshua Harris and Nicholas Cacciarelli.

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.

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.”

William Brewer Writes in The Dallas Morning News About Texas School Accountability Case

October 15, 2024 — William Brewer III writes in today’s Dallas Morning News opinion section that Texas school accountability ratings should be released, and shares that the Brewer Foundation Future Leaders Program (FLP) intervened in a court case in support of doing so.

The text of the piece follows:

The “Texas miracle” is an often-told tale of unbridled economic expansion and explosive population growth.

But as new residents flock to our state — an estimated 470,000 last year — many public schools in Texas are failing to adequately educate the children already here. It is no “miracle” when most of Texas students attending public school did not meet grade level on the state STAAR exam last year, including 64% of Black children, 58% of Hispanic children and 62% of economically disadvantaged students who did not, according to the Texas Education Agency.

Unfortunately, rather than a united determination to fix the situation, battle lines are emerging in the community — and in the courtroom. A monumental fight is taking place in state court that will determine whether parents can easily access information evaluating the student performance at schools that their children attend. Incredibly, the answer from a Travis County judge may be “No,” as she recently blocked the release of such data after five school districts sued Texas Education Commissioner Mike Morath.

School and district ratings should be released, for the sake of transparency and accountability. Doing so represents the first step in addressing the state’s educational crisis. Such information informs educational choices parents make for their children. Information is power, and the effort to suppress it is a detriment to educational progress and the future generations of our state.

That’s why the Brewer Foundation Future Leaders Program, which supports students from a dozen Dallas ISD schools, is among the parties that intervened in the case in support of releasing school ratings. Programs like the FLP, parents and community stakeholders need to access such information and use it to empower them to make critical educational decisions.

School districts are taking divergent paths in the legal action over the release of Texas public school accountability ratings, with some districts, such as Dallas ISD, voluntarily releasing their projected ratings.

Texas has more than 1,200 school districts, and yet just 33 districts that have now joined the lawsuit are blocking the release of ratings for all districts.

Of those school districts, 27 performed worse than the state average when it comes to students meeting grade level in 2023, according to TEA data on STAAR performance by school district. While scrutiny often focuses on large urban school districts such as Houston and Dallas, the plaintiff districts in the lawsuit demonstrate that many rural districts and exurb communities are struggling and failing to adequately educate children.

For example, in 2023, Kingsville ISD enrolled 2,694 children and only 27% met grade level on the STAAR exam across all grade levels and subjects tested.

We must invest in public schools and commit to making them better. They are part of the fabric of our state and will always remain so. In 1876, the Texas Constitution wisely declared that it was the duty of the state Legislature to support and maintain “an efficient system of public free schools” given the essential role of a “general diffusion of knowledge.” We must resist the urge to turn the accountability case into a referendum on vouchers.

The immediate impulse may be to penalize these failing districts. Instead, let’s talk about solutions: schools need adequate funding to address challenges to student achievement.

Many studies report that Texas is not funding its public schools adequately. An August 2024 report by Rice University’s Kinder Institute found that 73% of Texas public schools are underfunded and that districts with the larger funding gaps tend to have the lowest student achievement ratings from the TEA. The report concluded that “severely underfunded” school districts were “strongly associated” with ratings of “C” or worse. The correlation comes as no surprise.

Let’s consider the findings of the accountability ratings a galvanizing force. Within every district, we should promote transparency, address academic and financial shortcomings, and share best practices, all benefits of the ratings process. Only then can we live up to our larger-than-life story of the Texas miracle.

William A. Brewer III is managing partner of the Brewer Storefront and founder of the Brewer Foundation Future Leaders Program. Katherine Leal Unmuth contributed to this article.

We welcome your thoughts in a letter to the editor. See the guidelines and submit your letter here. If you have problems with the form, you can submit via email at letters@dallasnews.com

Brewer Foundation Intervenes in Travis County Demanding Greater Accountability and Transparency for Public Schools

September 5, 2024, Dallas, Texas… The Brewer Foundation on September 5, 2024, filed a petition in intervention (“petition”) 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 petition seeks to dissolve the temporary restraining and prevent a permanent injunction – paving the way for greater accountability in these school districts across Texas.

The FLP 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 program maintains relationships with educators across the state, has been recognized by the Texas State Board of Education and Texas Governor’s Office, and advocates for improved educational offerings in Texas and beyond.

“The plaintiff districts are attempting to prevent the release of grades that help educators and parents better understand how their local public schools are performing and how well they are educating children,” says William A. Brewer III, partner at Brewer Storefront and founder of the FLP. “We support the call for greater transparency. As we know from our work with FLP students, identifying the opportunities to improve the educational system is the key to addressing educational performance – to the benefit of children and our collective futures.”

According to the petition, only about 53% of students in Texas meet grade level in English language arts and reading, and around 23% of students across all districts in Texas are not even approaching grade level. These numbers are even more drastic when Black and Hispanic student scores are isolated. Across the State, more than 59% of Black students and 54% of Hispanic students fail to read at grade level.

According to the TEA, the ratings are based on three domains: student achievement, school progress, and closing the gaps.

The Storefront has brought numerous successful Section 2 Voting Rights Act cases on behalf of Hispanic and Black voters in Texas, in efforts to ensure that the interests of minority voters – and children – are better represented on elected school boards. The Storefront’s Texas Voting Rights Initiative (TVRI) was founded due to concerns that a lack of diversity and equitable geographic representation on school boards can lead to underfunded schools, school and student achievement gaps, and disenfranchised voters.

Founded in 2001, the FLP is an academic and leadership development program that benefits Dallas Independent School District (DISD) students, ages 12-18, and provides them with year-round academic coursework and leadership training to prepare students for success in college and beyond. The FLP has become a national model to address the “dropout epidemic.”

The petition adds that the Brewer Foundation has a “vested interest” in the availability of the A-F performance ratings so the students in the FLP program and their parents can make “informed school decisions.”

The petition observes that the five plaintiff school districts face considerable challenges with student achievement:

• Pecos-Barstow-Toyah Independent School District in West Texas in 2022-23 enrolled 2,776 students, of whom about 72% were economically disadvantaged and 91% were Hispanic. In 2023, 66% of students did not meet grade level.

• Crandall Independent School District outside of Dallas in 2022-23 enrolled 6,003 students of whom about 62% were economically disadvantaged, about 40% were Hispanic, 31% were white and 25% were Black. In 2023, about 60% of students did not meet grade level.

• Forney Independent School District outside of Dallas in 2022-23 enrolled 16,211 students, of whom about 43% were economically disadvantaged, 36% of students were Black and 29% were Hispanic. In 2023, about 51% of students did not meet grade level.

• Fort Stockton Independent School District in West Texas in 2022-23 enrolled 2,187 students, of whom about 71% were economically disadvantaged and 89% were Hispanic. In 2023, about 65% of students did not meet grade level.

• Kingsville Independent School District in South Texas in 2022-23 enrolled 2,694 students, of whom about 83% were economically disadvantaged and 85% were Hispanic. In 2023, about 73% of students did not meet grade level.

The petition seeks dissolution of the temporary restraining order – and denial of plaintiffs’ request for a permanent injunction prohibiting the issuance of accountability ratings for the 2023-24 school year.

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.

Let's Applaud the Mississippi Court for Confirming Private Right of Action in Voting Rights Act Cases

July 11, 2024 - Brewer Storefront applauds a three-judge panel in the U.S. District Court for the Southern District of Mississippi for upholding a private right of action to sue under Section 2 of the Voting Rights Act in Mississippi State Conference of the NAACP v. State Board of Election Commissioners.

The Storefront is the community service affiliate of the law firm, Brewer, Attorneys & Counselors. The Storefront recently launched the Texas Voting Rights Initiative (TVRI).

The Mississippi judges ruled in favor of the NAACP and numerous Black voters in a case concerning Republican-drawn state legislative maps. The court properly noted that “few congressional enactments have had a more profound effect on the country than the Voting Rights Act of 1965, and a large percentage of the enforcement actions under the Voting Rights Act have been brought by private individuals…”

Mississippi falls within the Fifth Circuit Court of Appeals, which also covers Texas. Importantly, the Fifth Circuit has held that Section 2 of the Voting Rights Act does provide a private right of action, and this Mississippi three-judge panel embraces the wisdom of that holding. This right of action has been acknowledged in hundreds of cases at the federal district level, and many times at the Supreme Court. 

“The Mississippi court should be commended for validating that individuals may continue to serve as plaintiffs in Voting Rights Act cases,” Storefront Partner William A. Brewer III said. “It is critical that Black voters and other voters of color be empowered to challenge discriminatory election systems where they exist. Otherwise, these voters will be silenced and their rights suppressed.”

Late last year, a three-judge panel in the Eighth Circuit Court of Appeals found in a 2-1 decision in a redistricting case filed in Arkansas that only the federal government can bring a Section 2 voting rights challenge. That case was brought by the Arkansas State Conference NAACP and others.

“Unfortunately, judges in the Eighth Circuit removed the rights of individual voters in those seven states to bring lawsuits asserting their voting rights,” Brewer said. “We believe the private right of action should ultimately be restored in order to continue to ensure that voters of color in the United States are guaranteed a fair opportunity to elect candidates of their choosing.”

The Storefront has brought many successful voting rights cases on behalf of private individual plaintiffs; these cases spur election reform in districts across Texas and help minority communities elect the officials they choose to numerous school boards and city councils.

In March 2024, Brewer Storefront launched the Texas Voting Rights Initiative (TVRI), a statewide effort focused on ensuring that Texas school boards operate in compliance with the Voting Rights Act. The Storefront undertook an extensive analysis of voting systems across Texas and believes that many operate in violation of the VRA.

The Storefront currently has pending cases challenging at-largeelection systems used to elect school boards in the Pearland Independent School District, Humble Independent School District, and Angleton Independent School District in Texas.

Biote Shareholder Achieves $60 Million Settlement of Breach of Fiduciary Duty Claims

July 3, 2024 – Brewer, Attorneys & Counselors announced today that its client, Marci Donovitz, reached a $60 million settlement with the company. The settlement resolves a lawsuit alleging that Biote executives breached their fiduciary duties by channeling the hormone therapy company into a speculative transaction with a special purpose acquisition company (“SPAC”) which provided almost no cash for the merger.

The lawsuit was filed by Ms. Donovitz on June 5, 2024, against defendants Biote CEO Teresa “Terry” Weber, Biote Executive Chairman Marc Beer, Biote General Counsel Mary Elizabeth Conlon, Haymaker Sponsor III LLC, Steven J. Heyer, and Cooley LLP. Haymaker was the SPAC sponsor for the transaction and Cooley advised those involved with the deal. Ms. Donovitz is the trustee of the Donovitz Family Irrevocable Trust and a BioTE Holdings, LLC shareholder.

The lawsuit alleged that “Defendants knew for months that astronomical redemptions would eviscerate almost all the cash raised by the SPAC and would cause the transaction to be destructive of value. Nonetheless, Defendants proceeded with their scheme to enrich themselves.” The lawsuit further alleged that as part of the transaction, defendants improperly diverted $70 million from the deal to Biote executives and $135 million in cash and stock in total to all defendants.

“This settlement validates our client’s claim that the transaction was a scheme to enrich a few company ‘insiders’ – and reward them with financial and managerial benefits to which they were not entitled,” says William A. Brewer III, partner at Brewer and counsel to Ms. Donovitz. “Our client hopes this outcome lights a path for those victimized by similar deals. This case underscores the rights of those too often viewed as pawns in these speculative pursuits.”

As explained in the underlying lawsuit, filed in The Court of Chancery of The State of Delaware, 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.

Ms. Donovitz is the ex-wife of Biote founder Dr. Gary Donovitz, who the lawsuit contends was tricked into waiving a minimum cash closing condition just days before the SPAC deal was completed on May 26, 2022.

As has been publicly reported, Biote was a defendant in a separate lawsuit filed by Dr. 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 addition to breaches of fiduciary duties, the lawsuit by Ms. Donovitz also alleged that defendant Biote executives negligently “misled Plaintiff’s trustee regarding the likely impact of this Merger on the value of her shares, failed to disclose material information regarding the risks of this SPAC transaction (including the possibility that it would provide virtually no cash), and failed to disclose that these risks had materialized.”

Under the terms of the settlement with Ms. Donovitz, Biote will repurchase all of the approximately 8.3 million shares she owns. At an average of $7.23 per share, the payout will occur over a three-year schedule:  approximately 4.1 million shares valued at $30 million immediately, followed by 1.4 million shares valued at $10 million for each of the next three years.