Category Archives: Settlements

A dimly lit room with a small stage surrounded by mirrors. There's a pole on the stage, and a row of cushioned chairs facing it. The lighting is primarily purple and blue, creating a nightclub-like atmosphere.

Strippers Win Revealing Settlement

Leaving everything on the table

A company in Atlanta just found out the hard way that they’re required to actually pay their employees. Seventy-three exotic dancers from Club Onyx won a total of $1.55 million from their main employer, Galardi South Enterprises.   Apparently the owner of Club Onyx compensated his strippers only by the generosity of the average strip club attendee.  This led to unfair advantages for certain more talented strippers (and, I suspect, more dollar bills could fit in larger g-strings).  The judge’s ruling states that strippers are not qualified as independent contractors, and therefore are due wages beyond any tips they receive.  This follows a rising tide of wage dispute lawsuits, such as Mario Batali’s tip-stealing debacle or California’s lunch compensation conundrum.

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Clarissa Settles It All

TV turnaround

Comebacks can be costly.  Melissa Joan Hart starred in a couple of hit TV shows in her career, Clarissa Explains It All (1991-1994) and Sabrina the Teenage Witch (1996-2003), both aimed at the teenage demographic.  After that, she wasn’t quite so young anymore (just 15 at the start of Clarissa, surprisingly), and thus wasn’t the best choice to sell TV shows to said demographic anymore.  Consequently, her acting career sort of floundered in the years post-Sabrina.  Sometime in 2006 and shortly after the birth of her first son, Hart hired talent manager Kieran Maguire to help bump her up to the lucrative 25-to-36 demographic and win back her bygone star power.  This tactic turned out to be successful: in 2010, Hart premiered her TV show Melissa and Joey, a family sitcom about parents and motherhood and raising kids and junk.  (Aside: That I, a 23-year-old male, have no interest in watching the show is testament to its intended marketing segment.)  Nevertheless, things were looking good for Mrs. Hart in her successful transition from teenage idol to sitcom matron.

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Oil Refiners Settle “Hot Fuel” Lawsuit

Oil refinery

“Hot Fuel” sounds like the title of an awesome action movie.  I’m thinking Speed meets Under Siege, set on an oil tanker.  I’m kind of upset that the phrase is wasted on a much more boring concept.  Nevertheless, oil refineries recently heard “hot fuel” as often as they’ll ever want to after getting bitchslapped in the courtroom by science.  They’ll have to pony up $21.6 million total to resolve claims in this hot fuel suit, with the money to be divided between the 50 retailers across the country who brought charges against them.  So what is this “hot fuel” garbage, anyway?

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Facebook to Pay $10 Million in Sponsored Story Settlement

Thumbs up

A proposed settlement between Facebook and a class of litigants has the social networking company paying $10 million to charity.  The issue at hand was whether Facebook violated California law by using its users’ names and profile pictures to advertise products without paying them and without giving them any way to opt out.  With its “sponsored stories”, users’ “likes” of products were unwittingly posted across their friends’ news feeds.  Companies would pay way more for these stories than a traditional advertisement, with Mark Zuckerberg saying they were the “Holy Grail of advertising”, akin to a word of mouth personal recommendation.  So, if you clicked “like” on a page about bananas, you’d be shown on your friends’ feeds as “John Doe likes bananas, go buy one here”.  Or, in the case of Nick Bergas, your face would be endorsing a 55-gallon drum of personal lubricant.  His story accentuates the main legal problem at issue here:  what if you don’t care about a product you’re shown endorsing?  Worse, what if you don’t want to be shown endorsing anything at all?

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Apple Settles Embarrassing False Advertising Case

Rotten apple?

While you were gawking at the new kind-of-better-in-some-ways-I-guess Macbook Pro at this week’s Apple Worldwide Developers Conference, Apple’s law team was quietly paying out a settlement to a Australian government regulators.  Apple shipped their newest 4G-compatible iPhones and -Pads to Australia, where ravenous consumers quickly snatched them up.  There was one catch: the electronics did not actually work with any LTE networks in the country.  Luckily, the Australian Competition and Consumer Commission was ready to slap Apple around with a lawsuit, alleging that Apple knowingly advertised this whole 4G business despite being well aware that the technology wouldn’t work.  Sensing an uphill court battle, Apple quickly settled the case (if I had to guess, I’d say it was a pretty clever tactic to hide the negative press among all the buzz for their WWDC event).  The outcome: Apple must pay a fine of $2.25 million to the Australian government, and will also probably have to pick up the tab for $300,000 worth of legal fees.  Though they aren’t required to, Apple is also offering refunds to customers who felt cheated.  What a nice company.

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