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What Fashion and Luxury Goods Companies Need to Know About Restructuring and Bankruptcy

By the of the end of 2017, the industry saw more than 300 companies file for bankruptcy, with no less than 30 involving major retailers. By end of the third quarter of 2017, more than 6,400 store closings occurred — triple the number of closings during the first half of 2016.   

Collaborating Instead of Litigating: Brands Make Hay of ‘Artistic’ Homage

Fashion Law leader Anthony V. Lupo spoke with WWD as part of their feature on a recent trend by companies to bring provocative (and critical) social media voices into their fold.   “Why are brands so quick to show they’re “in” on the joke and in turn validate what is simply an Instagram account doing little beyond calling out designers for copying one another,” asked WWD.  

Estate Planning Opportunities Under the New Tax Law

In addition to overhauling the taxation of income of partnerships, corporations, and individuals, the Tax Cuts and Jobs Act signed into law by President Trump on December 22, 2017 ushered in significant changes to the wealth transfer tax system. These changes will create major new opportunities to minimize the tax cost of transferring wealth, beginning in 2018.  

DOL Abandons Longstanding Intern Test in Favor of a More Employer-Friendly Standard

Noting that on December 19, 2017, the US Court of Appeals for the Ninth Circuit became the fourth federal appellate court to expressly reject the US Department of Labor’s (DOL’s) six-part test for determining whether interns and students are employees under the Fair Labor Standards Act (FLSA), the DOL announced on January 5, 2018 that it would adopt the “primary beneficiary” test endorsed by those courts in evaluating internships sponsored by private employers.  

FUCT: Federal Circuit Rules Ban on Immoral and Scandalous Trademarks As Unconstitutional

The US Court of Appeals for the Federal Circuit has ruled that the Lanham Act’s statutory ban on “immoral or scandalous” trademarks violates the First Amendment and is thus unconstitutional. See In re Brunetti, No. 2015-1109, 2017 WL 6391161, at *17 (Fed. Cir. Dec. 15, 2017). The decision comes just months after the US Supreme Court unanimously affirmed the Federal Circuit’s decision in In Re Tam, holding that the ban on “disparaging marks” also unconstitutionally restricted free speech.  

Beware the Risks of Background Checks: Liability Waivers May Violate the Fair Credit Reporting Act

On November 21, 2017, an employee of L3 Technologies Inc., a government contractor, filed a putative class action in federal court in California alleging that the consent form the company provides to new hires and employees prior to conducting a background check runs afoul of the Fair Credit Reporting Act because it also includes a liability waiver.

Trump NLRB Overturns Controversial Employee Handbook Standard

On December 14, 2017, the National Labor Relations Board (NLRB or Board) voted to overturn its 2004 decision in Lutheran Heritage Village-Livonia (Lutheran Heritage), which established a standard for evaluating the legality of employer handbook policies that has been used in recent years to invalidate a wide range of common workplace rules.

New NLRB General Counsel Ready to Shake Things Up

On December 1, 2017, Peter Robb, the new General Counsel of the National Labor Relations Board (NLRB), issued a memorandum entitled “Mandatory Submissions to Advice.”

Is FDA Turning the Clock Back on Anti-Aging Claims?

In a surprise move last week, the US Food and Drug Administration (FDA) ever so quietly – and for reasons not yet completely clear – withdrew Import Alert 66-38, “Skin Care Products labeled as Anti-Aging Creams” (IA 66-38). For almost 30 years, that Import Alert had been heavily utilized by the FDA as a basis for preventing the importation of skin care and cosmetic products labeled with “anti-aging” claims. The Import Alert cites claims that a product will  “COUNTERACT” or “RETARD” the aging process, or “REJUVENATE,” “REPAIR,” or “RESTRUCTURE” the skin, as examples of statements that the FD

Anthony Lupo and Aram Ordubegian Talk Bankruptcy in the Face of the 'Retail Apocalypse'

It's no secret that 2017 has been a particularly difficult and troubling year for the retail industry. Changing consumer preferences and attitudes, the need for rapid and convenient shopping solutions, and a surge in online shopping offer some insight as to why the landscape has been evolving so rapidly...and why the retail sector has been hit so hard.