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Abuse?: Former Underwear Model Sues Former Employer for Funding “Meritless” TCPA Claim Allegedly Designed to Drive Him Out of Business
Tuesday, February 15, 2022

So I rarely resort to clickbait tactics, but any time you can use the phrase “underwear model” in the title of a legal blog you just have to cash in.

And the plaintiff’s status as a former underwear model does hold some relevance here–apparently his former employer–and now fiercest competitor–used to try to humiliate the guy with constant and public references to his nuder days of yore according to a new complaint:

  • Jacobson often encouraged co-workers and prospective clients to search for pictures of Gladstone online from his prior underwear modeling career.

  • Jacobson forced Gladstone to send a giant cardboard cutout of Gladstone modeling underwear to a gay, male physician prospect.

  • Jacobson made highly offensive and sexually taunting remarks to and about Gladstone in the office and in sales meetings.

Salacious. But what does it have to do with the TCPA?

Well this colorful backdrop serves as the setting for a new lawsuit filed to challenge the filing of yet another lawsuit–this one a TCPA class action–that was allegedly brought by a competitor solely to try to put a company out of business.

So what’s going on here?

Its a classic tale really–allegedly. A star pupil in a business becomes so successful that he is a threat to management. Management seeks to humble the standout performer. Ultimately the performer grows weary of the abuse and sets on on his own aiming to compete doing things his own way. Management of the former employer grows furious and tries to crush the new comer by any means, including with frivolous litigation.

Some iteration of this story plays out a thousand times a day in this nation across many industries–Big Law being no exception (trust me on that.)

This story is unusual, however, because the weapon the jilted business (allegedly) tried to deploy to crush the new comer was a TCPA class action. (Well, and because of the whole underwear thing.)

Specifically, the former employer allegedly found a patsy plaintiff to bring a class action against the new competitor–and bankrolled the lawsuit–all in a scheme to shut down the new business. Here are the key allegations:

Jacobson – the CEO of SignatureMD – pays May’s legal fees in this litigation against SignatureMD’s competitor and former employee. . . . [T]his arrangement raises significant concern as to whether May’s counsel is motivated by a desire to zealously represent the putative class, or instead by Jacobson’s or SignatureMD’s litigation agenda. This arrangement also raises significant concern about whether Jacobson has or will interfere with the professional judgment of May’s counsel.

The claims and allegations in the federal suit, coupled with Dr. May’s stunning admissions, confirm that SignatureMD and Jacobson—using Signature’s medical advisory board chairman as their pawn—masterminded the lawsuit and continued to control it from the shadows to circumvent the arbitration provision and to continue to wreak financial havoc on Longeviti (and its young CEO, Gladstone), who compete directly with SignatureMD in the concierge medicine support services market.

Pretty gross right?

Now I don't know whether any of these allegations are true–the former employer may have a perfectly reasonable response (and there are two sides to every story even if the facts are accurate)–but it is certainly true that defending TCPA litigation can pose a huge drain on any institution. So it does not surprise me to hear that companies might consider unleashing a TCPA class action on a business rival to gain a competitive advantage.

Relatedly, I am often asked by my clients what they can do about the other companies out there not following the law. I often tell them–don’t worry, its only a matter of time before they get sued and regret their decision. But this is not what I had in mind. haha.

Of course a business looking to be more proactive against a rival that is flouting the law can always sue the rival directly under a state UCL claim (where available.) It is unfair to the good business that the bad business is gaining an advantage (e.g. more sales) my making illegal calls. And many states allow the good business to sue the bad business to recover those illicit gains. (Give me a call if you have questions about this.)

In any event, I’ll pay close attention to this new suit–you can read the complaint here Weird Complaint–and let you know what develops.

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