The SEC Halts Trading Of More Than 20 Stocks Due To COVID-19 Claims
As a result of the influx of fraudulent activity stemming from the COVID-19 pandemic, in April the Enforcement Division of the United States Securities and Exchange Commission ("SEC") suspended trading for more than 20 publicly-traded companies, including 16 penny stocks on the OTC market. The SEC explained that it has concerns that these ...
Price Gouging Tests the Limits of Free Competition
Last month, a pair of brothers in Tennessee made headlines for stockpiling hoards of hand sanitizer and bacterial wipes purchased from retailers during a "1,300-mile road trip across Tennessee and into Kentucky". The entrepreneurs then listed the items on Amazon, often for many times the original purchase price. Throughout March, similar stories ...
EEOC to Allow Employers to Test Employees for COVID-19 Upon Return to Work
The U.S. Equal Employment Opportunity Commission ("EEOC") provided further guidance on how far employers can go to screen workers for health risks before returning to the workplace. Specifically, the EEOC stated that employers may administer COVID-19 tests of employees upon returning to work without contravening the Americans with Disabilities ...
Musk’s “Funding Secured” Tweet Found To Be Actionable
On April 15, 2020, Northern District of California Judge Edward Chen denied Tesla, Inc.'s ("Tesla") motion to dismiss the consolidated class action lawsuit regarding Elon Musk's tweet to take Tesla private for $420, finding that the tweet and several related statements were false and misleading. The Court found that the specific words and ...
Volkswagen Characterizes SEC Emissions Fraud Suit as “Me Too Litigation”
Volkswagen has taken the unusual step of arguing that a case brought by the SEC on behalf of defrauded bond investors is "me too" litigation and that the SEC claims are "inequitable." In 2015, the EPA determined that the huge auto maker installed "defeat devices" in millions of "clean diesel" vehicles that were specifically engineered to cheat ...
The U.S. Is Awash in Coronavirus Scams
A pandemic of consumer fraud has followed in COVID-19's wake. Since the beginning of this year, the FTC has received more than 7,800 reports of scams related to COVID-19. Among these scams, many had focused on so-called "miracle" cures.Recent miracle cure scams include: • Vital Silver essential oil products, which the FTC and FDA allege ...
Consumers Seek Revival of the Parmesan Cheese False Advertising Case in the Seventh Circuit
Last week, plaintiffs in the In Re: 100% Grated Parmesan Cheese Marketing And Sales Practice Litigation filed their opening brief in the Seventh Circuit, asking the panel to revive their dismissed false advertising claims. The plaintiffs' claims seek to hold different manufactures and sellers liable for falsely claiming their grated parmesan ...
Rise of Mass Arbitration Tactics Defeats Corporations at Their Own Game
In 2011, the United States Supreme Court transformed the field of class action litigation in the landmark case AT&T Mobility v. Concepcion. In a 5-4 decision, the Supreme Court held that agreements requiring consumers' and employees' claims to be arbitrated individually, as opposed to a class-wide basis, were enforceable and preempted state ...
CORONAVRIUS TRACKING PLAN HAS SECURITY RISKS
Contact tracing, along with widespread testing and effective quarantine measures, is seen as critical to slow the spread of the coronavirus. The ambitious Covid-19 contact tracing plan that is being developed by Apple and Alphabet Inc.'s Google has great potential. However, it will undoubtably create a tempting target for cybercriminals looking ...
Shake Shack Returning $10 million Paycheck Protection Program Loan to the US Government
Shake Shack Inc. is returning a $10 million loan that the company received through the Paycheck Protection Program established by the CARES Act. Shake Shack, a publicly traded company (NYSE: SHAK) with more than 8,000 employees, was able to qualify for the small business loan through an exception that was given to companies in the restaurant ...