A recent development in a legal case involving healthcare apparel company, Scrubs Co., saw a judge rule that the company must arbitrate against its former lawyer over a Lanham Act false advertising suit loss. In a decision handed down on February 28, 2024, the judge ordered the parties to arbitration, a decision met with agreement by the company. In addition to this, Scrubs Co. also agreed to pursue claims against the lawyer’s firm, Michelman & Robinson LLP.
The legal skirmish arose from a preceding case where Scrubs Co. filed a false advertising suit against a competitor. The case, which was presented before a California federal court, did not end favourably for Scrubs Co. Observers are now keenly watching these subsequent actions, expecting the arbitration and claims to shed more light on the internal workings of the false advertising case and why Scrubs Co. met with a loss.
For those interested in the intricate details of the case, the ruling, and what it may mean for legal actions in the healthcare apparel industry moving forward, consider reading the original Law360 coverage on the matter.