Firm News & Information

Steve Heath was co-lead counsel in a lawsuit filed in the San Diego Superior Court for a China-based investor against a former employee accused of stealing $23 million deposited in U.S. corporate bank accounts. Following a seven-day bench trial, the Court awarded the firm’s clients $23 million in compensatory damages, $8 million in punitive damages, and entered a permanent injunction.

The dispute began in mid-May 2022, when the employee took control of four accounts over which she had co-signatory authority and began siphoning the funds to a separate entity she owned. After the clients filed their complaint, the employee tried to justify her misconduct through further acts of deception – claiming that the plaintiff-investor was an ‘imposter’ and that, in transferring the funds, the employee was acting under the instruction of the ‘real’ investor. The employee also filed in court various fabricated documents, included forgeries of Chinese government records, sought unsuccessfully to disqualify the firm as plaintiffs’ counsel, and even filed a separate lawsuit against the firm to unsuccessfully coerce it into dropping the case.

Throughout the lawsuit, Heath Steinbeck showed that the employee repeatedly violated a temporary restraining order and a preliminary injunction by spending millions of dollars on high-end real estate, luxury automobiles, and other purchases, and engaged in various acts of intimidation against the plaintiffs and their counsel. Prior to trial, the clients obtained an order freezing $15 million of the stolen funds and recovered an additional $3.9 million. On November 2, 2023, the court entered a final judgment for the full amount that the employee had stolen, $23 million, and also awarded the clients $8 million in punitive damages. The judgment also requires the employee to transfer to the clients real estate purchased with the stolen funds, and includes a permanent injunction forever barring the employee from engaging in any act in the names of the companies or the investor.

Bellami Hair, a pioneer in the hair extensions and beauty space, was acquired by Beauty Industry Group, a portfolio company of L Catterton. Firm partner Steve Heath has represented Bellami as ‘outside’ general counsel since its formation more than a decade ago. In that time, the firm has represented Bellami in a vast array of matters, including endorsement contracts and publicity rights, real estate transactions, corporate structuring, intellectual property, litigation, employment, vendor and brand agreements, and the development of its professional training program. For the acquisition, the firm acted as liaison to Bellami’s lead transaction counsel, Sheppard Mullin, and will continue its role as general counsel to Bellami as the company embarks on its next stage of growth.

The firm represents a long-time client in the purchase of two commercial properties on the Sunset Strip. The firm also drafted and negotiated related development agreements to transform the properties into office, hotel, and entertainment complexes, and will continue to serve as the client’s corporate counsel as the projects progress.

The firm was counsel to Core Covers, an industry leading manufacturer of custom spa and leisure products, in the sale of its U.S. and Mexican businesses to Dallas, Texas based Mitre Peak Capital.

The firm was counsel to Harness Power, Inc. in its acquisition of LarSun Solar, a Southern California-based regional solar and sustainable energy provider.

The firm was counsel Rock Hill Foods, LLC, a leading producer of organic, free-range eggs, in its acquisition by Pete & Gerry’s Organics, LLC, part of Butterfly Equity’s investment portfolio.

The firm represented Intrepid Spirits, a client of more than five years, in closing an eight-figure round of financing. Intrepid owns and distributes multiple alcohol brands in the U.S. and internationally, including Cocolero, Mad March Hare, and Eagen’s Irish Whiskey.

The firm represented long-time client HatchBeauty, a beauty and wellness incubator, in the stock purchase of Trendalytics, a consumer analytics platform. The deal is the second in the space of a year that Heath Steinbeck has handled for HatchBeauty, following its November 2020 purchase of Duncan Enterprises’ beauty brands.

The firm advised Classic Homes in its purchase of high-end furniture and upholstery manufacturer Braxton Culler, Inc. As part of the acquisition, the firm also handled real estate transactions concerning Braxton Culler’s 410,000 square foot plant and 28,000 square foot showroom in North Carolina.

The firm represented Spin Products, a California-based manufacturer of custom molded products, in its acquisition by Tank Holding, North America’s largest rotational molder.