Mar 30, 2020 | Whistleblower
$450,000 Awarded to SEC Whistleblower Whose Significant Information Helped Focus Ongoing Investigation of Violations Ultimately Charged
Kehoe Law Firm, P.C. is making individuals aware that on March 30, 2020, the Securities and Exchange Commission announced an award of $450,000 to a whistleblower whose significant information helped focus an ongoing investigation on the violations that were ultimately charged.
The whistleblower, who had compliance-related responsibilities, is eligible for an award, because the whistleblower reported concerns about the relevant conduct internally within the company and then waited 120 days before reporting to the SEC. This is the SEC’s third whistleblower award to an individual who had compliance or internal audit responsibilities.
The SEC has awarded over $396 million to 77 individuals since issuing its first award in 2012. All payments are made out of an investor protection fund established by Congress that is financed entirely through monetary sanctions paid to the SEC by securities law violators. No money has been taken or withheld from harmed investors to pay whistleblower awards. Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action. Whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.
As set forth in the Dodd-Frank Act, the SEC protects the confidentiality of whistleblowers and does not disclose information that could reveal a whistleblower’s identity.
Source: SEC.gov
Mar 30, 2020 | Consumer Protection, Employment & Technology Archive
Williams-Sonoma, Inc. Agrees to Stop Making Overly Broad and Misleading “Made in USA” Claims About Houseware and Furniture Products – Williams-Sonoma Required to Pay $1 Million to Settle FTC Charges
Kehoe Law Firm, P.C. is making consumers aware that n March 30, 2020, the FTC advised that Williams-Sonoma Inc. has agreed to stop making false, misleading, or unsubstantiated claims that all of its Goldtouch Bakeware products, its Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products are all or virtually all made in the United States. As part of the proposed settlement, Williams-Sonoma is required to pay $1 million to the FTC.
The San Francisco-based company, also doing business as Williams Sonoma, Williams Sonoma Home, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Rejuvenation, Outward, and Mark & Graham, markets its products throughout the United States, in stores and on its websites and social media platforms.
According to the FTC’s complaint, Williams-Sonoma deceptively claimed in advertisements and promotional materials that certain categories of its products were all, or virtually all, made in the United States.
In 2018, the FTC received reports that Williams-Sonoma claimed in ads and promotional materials for Pottery Barn Teen organic mattress pads that those products were “Crafted in America from local and imported materials.” When consumers purchased the mattress pads, they discovered that the pads, in fact, were made in China, according to the FTC’s complaint. Williams-Sonoma quickly corrected the country-of-origin information for the mattress pads, and agreed to comply with the FTC’s requirement that it undertake a larger review of its country-of-origin verification process. Consequently, on June 13, 2018, the FTC staff issued a letter closing the investigation.
The FTC alleges that since the closing letter was issued, Williams-Sonoma has made misleading claims that all Goldtouch Bakeware, Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products, including raw materials and subcomponents, were all or virtually all made in the United States. These claims include:
- Goldtouch Bakeware is made in America or in the USA. This claim appeared on the company’s website and in its catalogue.
- On the company website and in emails, Rejuvenation-branded products are made in America or in the USA.
- In a company video, Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture is made in America or in the USA.
According to the FTC’s complaint, numerous Goldtouch Bakeware products, Rejuvenation-branded products, and Pottery Barn Teen and Pottery Barn Kids-branded upholstered furniture products are wholly-imported, or contain significant imported materials or components. Therefore, Williams-Sonoma, allegedly, deceived consumers with its broad claims that all items in these product lines are all or virtually all made in in the United States.
Under the terms of the proposed order, Williams-Sonoma is prohibited from making unqualified U.S.-origin claims for any product, unless it can show that the product’s final assembly or processing—and all significant processing—takes place in the United States, and that all or virtually all components of the product are made and sourced in the United States. Under the order, any qualified Made in USA claims must include a clear and conspicuous disclosure about the extent to which the product contains foreign parts, components, and/or processing. To claim that a product is assembled in the United States, Williams-Sonoma must ensure that it is last substantially transformed in the United States, its principal assembly takes place in the United States, and United States assembly operations are substantial.
The FTC’s order also prohibits Williams-Sonoma, its officers, and any other company representatives from making untrue, misleading, or unsubstantiated country-of-origin claims in their marketing materials about any product or service.
Source: Federal Trade Commission – FTC.gov
Mar 30, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed Expanding the Class Period for Sterling Bancorp, Inc. Investors Who Purchased, Or Otherwise Acquired, SBT Shares Between November 17, 2017 and March 17, 2020, Both Dates Inclusive – Sterling Bancorp Investors Who Suffered Losses During the Class Period Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that another class action lawsuit was filed on March 27, 2020 in United States District Court, Eastern District of Michigan, against Sterling Bancorp, Inc. (NasdaqGS: SBT) on behalf of all persons and entities who purchased, or otherwise acquired, Sterling common stock from November 17, 2017 through and including March 17, 2020, (the “Class Period”),
The class action seeks to recover damages pursuant to §10(b) and §20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The class action also alleges claims under §§11,12(a)(2) and 15 of the Securities Act of 1933 on behalf of members of the Class that purchased, or otherwise acquired, Sterling Bancorp common stock in or traceable to Sterling Bancorp’s Initial Public Offering (“IPO”), which commenced on November 17, 2017.
Sterling Bancorp investors who purchased, or otherwise acquired, securities during the Class Period November 17, 2017 through and including March 17, 2020 and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Mar 30, 2020 | Securities Class Action Archive
Class Action Lawsuit Filed on Behalf of HF Foods Group Inc. Shareholders Who Purchased, Or Otherwise Acquired, HFFG Securities Between August 23, 2018 and March 23, 2020, Both Dates Inclusive – Kehoe Law Firm, P.C. Investigating Securities Claims on Behalf of HFFG Investors
Kehoe Law Firm, P.C. is making investors aware that on March 29, 2020, a class action lawsuit was filed in United States District Court, Central District of California, on behalf of persons or entities who purchased, or otherwise acquired the publicly-traded securities of HF Foods Group (“HF Foods” or the “Company”) (NasdaqCM: HFFG) between August 23, 2018 and March 23, 2020, both dates inclusive (the “Class Period”). The class action seeks to recover compensable damages caused by the HFFG Defendants’ alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
HF Foods investors who purchased, or otherwise acquired, securities during the Class Period and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.
Mar 29, 2020 | Consumer Protection, Employment & Technology Archive
FTC Warns Nine VoIP Service Providers and Other Companies Against ‘Assisting and Facilitating’ Illegal Coronavirus-related Telemarketing Calls
Kehoe Law Firm, P.C. is making consumers aware that on March 27, 2020, the FTC advised that it sent letters to nine Voice over Internet Protocol (VoIP) service providers and other companies warning them that “assisting and facilitating” illegal telemarketing or robocalls related to the coronavirus or COVID-19 pandemic is against the law. Many of these calls, according to the FTC, prey upon consumers’ fear of the virus to perpetrate scams or sow disinformation.
The staff of the FTC sent the letters to the following companies: 1) VoIPMax; 2) SipJoin Holding, Corp.; 3) iFly Communications; 4) Third Rock Telecom; 5) Bluetone Communications, LLC; 6) VoIP Terminator, Inc., also known as BLMarketing; 7) J2 Web Services, Inc.; 8) VoxBone US LLC; and 9) Comet Media, Inc.
The letters stress that combatting illegal telemarketing is a top priority of the FTC, with a special emphasis on stopping illegal robocalls. The FTC staff’s letters cite two cases the FTC has brought in this area, one against James B. Christiano whose companies provided software to robocallers, and another against a VoIP service provider called Globex Telecom.
The FTC’s letters also cite two civil enforcement actions the Department of Justice has taken against VoIP companies and their owners for “committing and conspiring to commit wire fraud by knowingly transmitting robocalls that impersonated federal government agencies.”
The letters warn the recipients that the FTC may take legal action against them if they assist a seller or telemarketer who they know, or consciously avoid knowing, is violating the agency’s Telemarketing Sales Rule (“TSR”).
The FTC letters note several types of conduct that may violate the TSR, including:
- making a false or misleading statement to induce a consumer to buy something or contribute to a charity;
- misrepresenting a seller or telemarketer’s affiliation with any government agency;
- transmitting false or deceptive caller ID numbers;
- initiating pre-recorded telemarketing robocalls, unless the seller has express written permission to call; and
- initiating telemarketing calls to consumers whose phone numbers are on the National Do Not Call Registry, with certain exceptions.
Source: Federal Trade Commission – FTC.gov
