The president of Arrayit, a publicly traded medical testing company, has been charged with securities fraud and conspiracy to commit healthcare fraud after it was revealed he had directed the company to submit false claims for allergy and COVID-19 tests. These charges include the company allegedly paying kickbacks to doctors who participated in the scheme. The charges are the first in the country against a medical company accused of exploiting the coronavirus crisis for their personal gain. Continue reading “Lab Executive Charged with Fraud in COVID and Allergy Testing”
Category: Business Law
Facing Bankruptcy, Hertz Paid Executives $16 Million in Bonuses
Hertz, the major rental car company, has struggled to stay afloat since the arrival of the coronavirus. Its business model is heavily reliant on tourism, and with most people staying at home, their revenues have plummeted. However, these financial difficulties did not stop the company from paying its executives $16 million in bonuses right before filing for bankruptcy, a move that has received criticism from employees and shareholders alike. Continue reading “Facing Bankruptcy, Hertz Paid Executives $16 Million in Bonuses”
Small Business Owners Seek Essential Status to Remain Open
With the stay-at-home order in New York now extended to May 28 for some parts of the state, many small business owners are increasingly seeking ways to survive what will soon be an entire Spring under quarantine. While many businesses have moved to telework arrangements where possible, many other “nonessential businesses” have been forced to remain closed for the duration of the quarantine. For some businesses seeking to survive, they have come up with a novel approach: finding a way to shift to be considered an “essential” business. Continue reading “Small Business Owners Seek Essential Status to Remain Open”
Employers Brace for Employee Coronavirus Exposure Suits
The coronavirus has occupied the attention of America for months now, with people quarantined in their homes to avoid contracting or spreading the disease. This effort to slow the spread of the coronavirus, however, has had a deleterious effect on the economy, and businesses are eager to return to normal so they can begin making money like they did before. Employees, however, are less than enthusiastic about returning to work in the middle of a pandemic, and they have been turning to the courts for a remedy. Continue reading “Employers Brace for Employee Coronavirus Exposure Suits”
FTC Addresses Rash of False and Unsubstantiated Coronavirus Claims
Amid the coronavirus pandemic, people are desperate for anything that might protect them from the disease or cure them if they have it. While plenty of companies are now hard at work on legitimate means of addressing the crisis, there have also been many people looking to cash in on people’s desperation. The Federal Trade Commission (FTC) has begun seriously cracking down on these fraudulent actors, sending out letters to dozens of companies making false or unsubstantiated claims about their products and their ability to fight the virus. Continue reading “FTC Addresses Rash of False and Unsubstantiated Coronavirus Claims”
NY PAUSE Extended to May 15 by Governor Cuomo
Governor Andrew Cuomo has announced that New York’s coronavirus quarantine measures, known more formally as the New York PAUSE (Police that Assures Uniform Safety of Everyone), will be extended until May 15. The PAUSE, which began on March 22, has heavily restricted most business operations and shut down all non-essential government functions. While it was initially intended to last only a few weeks, it has since been extended twice to deal with the severity of the coronavirus pandemic. Continue reading “NY PAUSE Extended to May 15 by Governor Cuomo”
The Benefits and Risks of Running a Business Remotely
With the coronavirus crisis fully underway, more and more businesses are having their employees work remotely from home. In the immediate sense, this has the benefit of protecting business owners, employees, customers and clients from exposure to the coronavirus, limiting the spread of the disease. However, there are other potential benefits, as well as risks, that business owners should be aware of as they transition to remote work. Continue reading “The Benefits and Risks of Running a Business Remotely”
PETA and Beyond Meat Face TCPA Suit
The nonprofit animal rights group People for the Ethical Treatment of Animals (PETA) and the vegetarian meat substitute manufacturer Beyond Meat may seem like odd bedfellows at first glance, but they both share an interest in getting people to eat less meat and more vegetarian products and have teamed up to that end. However, their efforts may have put them in violation of the Telephone Consumer Protection Act of 1991 (TCPA). Continue reading “PETA and Beyond Meat Face TCPA Suit”
Delivery Fee Not a Gratuity Under NYS Law, According to Second Circuit
In a case likely to have ripple effects across the industry, the Second Circuit of the United States Court of Appeals has ruled that a mandatory “delivery fee” was not a gratuity under New York State Law. This ruling may significantly impact delivery services throughout the state, who in some cases have been significantly underpaying delivery people on the basis of a “delivery fee” they received. Companies employing delivery people will need to reexamine their pay structure and compensate employees for lost wages. Continue reading “Delivery Fee Not a Gratuity Under NYS Law, According to Second Circuit”
Mandatory Arbitration Clause Backfires Against DoorDash
A mandatory arbitration clause placed into its employment contracts may have backfired for DoorDash, the on-demand food preparation and delivery service. DoorDash put the clause into the contract to avoid class and collective action suits by its employees, forcing the employees into private arbitration instead. However, as a result, DoorDash may now be financially responsible for the costs of more than 5,700 individual arbitrations, bound by that same arbitration clause. Continue reading “Mandatory Arbitration Clause Backfires Against DoorDash”
