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Paul Zimmerman
pzimmerman@mrllp.com
310.299.5500

Showing 4 posts from October 2016.

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Short-Term Rentals Fight Flares Up Nationwide

In recent months, cities across the nation have been implementing legislation aimed at regulating and restricting short-term rentals. The affected companies, namely Airbnb, have responded with lawsuits. The dispute has played out differently depending on which city and statute is at issue, but one thing is quite certain: the degree and extent of restrictions ultimately placed on short-term rentals, particularly in larger cities, will have a considerable impact on the hospitality industry. (Read More)

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Hotel News Update: Amicable Resolution Reached in High-Profile Litigation Over Management Agreement

Marriott International, Inc. ("Marriott") and Eden Roc, LLLP ("Eden Roc"), the owner of the Eden Roc Hotel in Miami Beach, Florida, have jointly announced an amicable resolution of their ongoing litigation concerning the hotel. Under the terms of the agreement, Eden Roc will pay Marriott $10 million now and $11 million five years from now (among other contingent payments) according to a joint statement from the companies. This brings to a close one of the more high-profile hotel owner-operator disputes in recent years. (Read More)

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Marketers of Health Supplement Settle FTC Charges Over Deceptive Advertising

Recent FTC action, and $150 million judgment, is a reminder that advertising rules must be followed and health claims need to be backed by scientific evidence.

The Federal Trade Commission (FTC) recently announced a settlement with Supple, LLC over charges that the manufacturer employed false advertising to promote its liquid, health supplement, “Supple,” including that the product “provided complete relief from chronic and severe joint pain caused by arthritis and fibromyalgia and was scientifically proven to eliminate joint pain.”  The defendant manufacturer sold more than $150 million in supplements between 2011 and 2015, an amount that they are now forfeiting. The action serves as a reminder to marketers, particularly those that utilize infomercials extensively in their campaigns, to avoid making unsubstantiated medical claims when advertising a health product. (Read More)

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Health Care Company to Pay $514 Million to Settle Kickback Allegations

Tenet Healthcare Corp. has agreed to pay states and the federal government $514 million to settle allegations that its hospitals in Georgia and South Carolina paid kickbacks for obstetric referrals. This massive settlement illustrates the importance of health care services companies (i.e. hospitals) not only implementing a detailed compliance program but also valuing complete transparency with regard to business relationships, particularly when it comes to maintaining open communication with counsel. (Read More)