Compliance » Exec Ignores In-House Counsel, Takes M Hit

Exec Ignores In-House Counsel, Takes $18M Hit

March 15, 2016

LISTENING-IN-A-DEAL420x470 TIGHTER

When a a company president was advised by in-house counsel that an on-line marketing strategy was problematic, he “put his hands over his ears,” according to the in-house counsel’s testimony. The strategy involved representing to consumers they could sign up for a free on-line “starter kit” that taught them how to sell things on eBay, while hiding in the fine print that they were also obligating themselves for a $60 a month web-hosting service unless they affirmatively declined it. The Ninth Circuit Court of Appeals upheld a district court order that the company president pay $18.2 million in restitution.

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