Author: Luke Daigle

Managing Legal Issues in the Health and Fitness Industry

Posted on by Luke Daigle

The health and fitness industry is booming, driven by a collective focus on well-being, technology advancements, and an increasingly health-conscious consumer base. However, this growth often brings a complex landscape of legal challenges that mid-sized companies need to navigate. At Pastore LLC, we specialize in both corporate litigation and transactional matters, and we’re here to share some critical legal insights tailored to businesses like yours.

Regulatory Compliance

FDA and FTC Regulations

If your company is involved in the manufacturing or marketing of dietary supplements, equipment, or health services, you’re likely subject to regulations from the Food and Drug Administration (FDA) and the Federal Trade Commission (FTC). Compliance is critical, as failure to meet these standards can result in severe penalties.

State-Specific Regulations

Depending on your jurisdiction, state-specific laws may affect your business, such as licensing requirements for fitness trainers or specific disclaimers needed for health advice.

Intellectual Property

Trademarks

Your brand is one of your most valuable assets. Ensure that your company’s name, logo, and any proprietary procedures or technologies are appropriately trademarked to protect them from unauthorized use.

Patents

If your health and fitness company has developed a unique piece of equipment or technology, consider patenting it to protect your competitive edge.

Contractual Obligations

Vendor Contracts

Your relationship with vendors is often governed by contracts. Be vigilant in understanding terms concerning quality, delivery timelines, and payment conditions.

Employment Contracts

Non-compete and confidentiality agreements can safeguard your business secrets. Always consult with legal experts when drafting these contracts to ensure they’re enforceable.

Data Privacy

Health and fitness companies often collect a lot of personal and health-related data. Familiarize yourself with data protection regulations such as GDPR or HIPAA, if applicable, to protect your company from legal repercussions.

Liability and Insurance

Premises Liability

If you operate a physical location, such as a gym, it’s essential to understand premises liability and have appropriate insurance coverages in place.

Product Liability

Manufacturers and suppliers in the health and fitness sector are often targets for product liability claims. Comprehensive insurance can provide a financial safety net.

Conclusion

Legal complexities in the health and fitness industry are numerous, but proactive steps and knowledgeable legal guidance can help you navigate them successfully. At Pastore LLC, we are committed to providing high-end, specialized legal services that can help your company not only survive but thrive. Contact us to learn more about how we can assist you in facing these challenges effectively.

For legal inquiries, please contact us at Pastore LLC.


(Paul Fenaroli is an Associate Attorney at Pastore admitted in Connecticut and the District of Connecticut. He provides private companies with a full range of business law services covering formations, mergers, acquisitions, corporate governance, securities offerings and litigation)

SEC ad rule may affect use of interactive analysis tools

Posted on by Luke Daigle

The new SEC advertising rule 206(4)-1 addresses the use of “interactive analysis tools” commonly used by investment advisers. In a recent article appearing in Regulatory Compliance Watch, Pastore associate attorney Paul Fenaroli weighs in on how this rule may affect the way advisers use these tools with their clients.

Read the article here

Source: Regulatory Compliance Watch, October 3, 2022. (www.regcompliancewatch.com)

Pastore LLC Counsel in Large Bankruptcy Case Involving High End Westchester Development

Posted on by Luke Daigle

Pastore LLC has been tapped as counsel in two related bankruptcy matters in the Southern District of New York (presided over by Judge Drain, who is also presiding over the Purdue Pharma Bankruptcy). The first matter involved a residential development in Bronxville, New York that is the most expensive per square foot development in Westchester. The second matter involves the related construction management company. Pastore LLC represents a large creditor and owner of the construction management company.

Pastore LLC, as Co-Counsel with Skadden, Effectuates $1 Billion Purchase

Posted on by Luke Daigle

Pastore LLC, as Co-Counsel with Skadden, Arps, Meagher & Flom LLP, is representing GPB Capital Holdings LLC in its $1+ billion sale of its automotive assets. Providing World Class Corporate Governance Advice, GPB and Skadden Arps tapped Pastore LLC to address a multitude of corporate governance issues to ensure that the dozens of GPB automotive entities were authorized to enter into the transaction. Working long nights and weekends, Pastore LLC was led by Managing Partner Christopher Kelly, a former Skadden Attorney, and a team of associates.

With Vinson & Elkins L.L.P as legal advisor to Group 1 Automotive, the transaction was signed the morning of September 13, 2021.  The signing encompasses the agreement of Group 1 Automotive to purchase substantially all the automotive assets of GPB. GPB’s automotive portfolio generated $1.8 billion in annual revenues in 2020 while retailing over 52,000 new and used vehicles. This acquisition by Group 1 Automotive will provide the acquirer with 30 additional dealership locations and three collision centers, coupled with GPB’s extensive portfolio of luxury and non-luxury vehicles.

Media coverage of this transaction has included Yahoo Finance, WSJ, PR Newswire and Seeking Alpha, among others.

Infrastructure Bill May Broaden Definition of “Broker” to Include Cryptocurrency Miners and Developers

Posted on by Luke Daigle

The United States Senate recently passed an infrastructure bill, H. R. 3684, which contains new regulations regarding the reporting of digital assets for cryptocurrency miners and software developers.

The regulations in the bill, entitled “Information Reporting for Brokers and Digital Assets” aims to extend cryptocurrency tax reporting requirements, which could raise money to help offset some infrastructure development. At issue is an addition to the definition of the term broker in Section 6045(c)(1) of the Internal Revenue Code of 1986. Currently, the bill would insert a new subparagraph which makes the definition include “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person.” H. R. 3684, at 2434 (as of 8/11/2021). Such a literal addition would cause not only the intended effect of encouraging reporting from crypto exchanges, but also require that anyone who is involved with any service that involves cryptocurrency transfers be required to report their transactions, as a broker is required to do. This could include crypto miners, software developers, and others involved in crypto exchanges who cannot know who their “customers” are because of the anonymous nature of crypto mining, and are therefore incapable of reporting the necessary information that a broker is required to report by law.

The definition amendment was the source of public backlash and concern that the cryptocurrency sector could potentially be outsourced outside of the United States as a result of this legislation. A bipartisan compromise to the amendment was drafted in an attempt to correct the over-broad language of the bill. However, this amendment was blocked by the Senate on Monday, August 9th, 2021. The following day, the Senate and passed the bill in its original form without additional amendments. It is still possible for the bill to be changed in reconciliation, as it has yet to reach the floor of the House of Representatives for a vote. In addition, the IRS may further narrow the definition (should the bill be passed and signed into law) when adding the amendment to the definition of broker in the Internal Revenue Code.