The Constitution Was Not Made Only For A Religious People

Last week, a ruling out of the Seventh Circuit presented the latest example that this country is facing an increasingly theocratic judiciary seeking to expressly favor religion and religious citizens at the great expense of nonbelievers. To be clear, the case is only at the preliminary injunction stage, so the Seventh Circuit panel was not making a decision on the merits. However, where the panel did make legal conclusions, they were downright alarming. For example, Judge Diane Wood declared that the court is convinced “that the speech that accompanies religious exercise has a privileged position under the First Amendment.” If your alarm bells went off at the mention of a “privileged position” within the First Amendment just wait, because somehow this opinion gets even worse:

We conclude by explaining that a comparison between ordinary speech (including political speech, which all agree lies at the core of the First Amendment) and the speech aspect of religious activity reveals something more than an “apples to apples” matching. What we see instead is “speech” being compared to “speech plus,” where the “plus” is the protection that the First Amendment guarantees to religious exercise.

Declaring that religious expression is entitled to some special, privileged status within the First Amendment that is superior to political speech is incredibly difficult to justify. For one thing, the free speech law that I thought we were all operating under, seems pretty clear that unless it is determining whether certain speech falls into a narrowly defined list of historical exceptions, government is not supposed to be in the business of making viewpoint or content-based restrictions. Yet, if courts are granting better treatment to expressive gatherings simply because they contain religious speech than other expressive gatherings such as political ones, this would seem to be a pretty clear-cut case of content-based restriction. Furthermore, there is a long line of cases that contradict this supposed special status of religious speech where the Supreme Court has declared that religious speech and nonreligious must be treated equally.

The decision by this Seventh Circuit panel, however, is just one of several high-profile pandemic restriction cases involving religious gatherings. As I wrote about before, the argument used in a California case that church gatherings must be regulated in the same way as dissimilar activities such as commercial retail, was rightly rejected. Although another case out of Nevada was much more complicated, the fact that the church was arguing for the court to adopt a standard of impermissible religious discrimination that is facially easier to satisfy than racial discrimination should be viewed as a major flaw. Moreover, the other problem with the argument used by the church in Nevada that churches and casinos should be treated the same was, as the district court repeatedly said, any comparison of the state’s regulatory regime when it came to churches and casinos revealed that the state was much more “intrusive and expansive” with casinos.

Although churches have repeatedly lost these pandemic cases, however, it is important to point out that no court ruled against a church based on the premise that secular gatherings were in possession of some special or enhanced constitutional protection that religious ones were not entitled to. Therefore, whatever you think about the cases where the churches lost, none should be viewed as more alarming than the Seventh Circuit opinion which declared the Constitution favors religious gatherings and expression more than secular ones.

Of course, no one should be surprised with the Seventh Circuit panel either. The myth that this country was conceived as a religious (Judeo-Christian) exceptional country has long been accepted as fact by wide swaths of the population. I see the most recent iteration of this myth being trotted out time and again in the form of a quote taken from a speech given by John Adams declaring that: “Our Constitution was made only for a moral and religious People. It is wholly inadequate to the government of any other.”

The “thing” about this quote though, is nothing in the Constitution’s text supports such a view. In fact, given that the original Constitution prohibits requiring a religious oath to hold office, Adams’ view directly contradicts the plain language of the document (See U.S. CONST. art. VI, § 1, cl. 3: “[N]o religious Test shall ever be required as a Qualification to any Office or public Trust under the United States”). In practical terms, expressly prohibiting a religious test for office amounts to a direct statement that government cannot favor religion. It takes a massive, unsubstantiated leap therefore, and in direct contradiction to plain language, to argue that our government was made only for religious people, or that it may favor religion over nonreligion.

The bottom line is, even if your intentions are not malicious, granting special favor in the law to religion or trotting out inaccurate quotes that claim our government was only intended for religious people in a modern society where nonbelievers make up an ever increasing share of the population is damaging. The Constitution is a document wholly adequate to govern believers and nonbelievers, alike to the mutual benefit of both. But it cannot function that way as long as those who operate it insist, wrongly, that the document favors them, to the exclusion of others who do not share their religious beliefs.


Tyler Broker’s work has been published in the Gonzaga Law Review, the Albany Law Review, and is forthcoming in the University of Memphis Law Review. Feel free to email him or follow him on Twitter to discuss his column.

3 Questions For A Litigation Finance Consultant (Part I)

(Image via Getty)

As with last week’s interviewee, this week’s spotlight will be on another great example of lawyers identifying a market need and starting a business to meet that need. We are fortunate this week to have the opportunity to discuss another unique New York-based firm meeting a defined market niche, the recently opened litigation funding consultancy Avenue 33 LLC, with its founder, Rebecca Berrebi. Some background on both Avenue 33 and Rebecca to start.

First, a brief introduction to Avenue 33. As provided by Rebecca, “Avenue 33 (www.avenue33llc.com) is a consultancy that provides litigation finance expertise and insight to litigants, law firms, investors, and other stakeholders. From deal structuring, case and relationship management, all the way through to enforcement and monetization, Avenue 33 assists its clients [to] maximize the value of their litigation funding transactions. Avenue 33 is also available to usher new entrants into the market by providing guidance backed by extensive industry, business, and legal experience.”

As for Rebecca herself, her background and credentials are right on target for the work that Avenue 33 performs. She has worked in the business of litigation finance since 2016. Prior to founding Avenue 33, she was the head of corporate affairs at a leading litigation/arbitration fund manager with over $2 billion AUM, overseeing dozens of actual and potential cross-border, complex litigation and arbitration finance transactions. Rebecca has also served on several boards and committees of companies undergoing claims, including as the co-chair of the board of directors of Eco Oro Minerals Corp. (CSE: EOM).  In addition to her litigation finance experience, Rebecca has also worked in communications and politics, and she has practiced law. After graduating from Duke University, she worked in the political affairs and public relations industry at Edelman and a U.S. national political campaign. Upon obtaining her law degree from Benjamin N. Cardozo School of Law, Rebecca practiced as a private equity M&A lawyer at Kirkland & Ellis LLC and in the legal group of a global private equity fund.

As usual, I have added some brief commentary to Rebecca’s answer below but have otherwise presented her answer to my first question as she provided it.

GK: 1) Your background as a practicing lawyer with both Biglaw and litigation funder experience is formidable. What makes you most optimistic as you launch Avenue 33?

RB: Thank you, Gaston! My past experience as both a transactional lawyer and the head of corporate affairs at a dispute funding firm gives me a unique perspective on the litigation finance industry. Each litigation finance matter has at least three main stakeholders — the litigant, the investor, and the law firm — who may all want to see a big win, but whose individual incentives differ. I have seen firsthand how a well-drafted contract, mutual understanding among the parties, plus efficient management of a case can lead to significant success for everyone involved. Unfortunately, I also know that often litigants, funders, and lawyers come to the table with a different understanding of the purpose and use of funding, leading to wasted time, friction, and loss of value. I am optimistic that my clients can benefit from using my corporate legal background and litigation finance industry knowledge to level the playing field, so that all stakeholders can fully appreciate the risks and benefits of each given opportunity, leading to properly valued transactions, smoother relationships throughout a case, and maximized outcomes.

GK: As someone whose practice includes client-work related to litigation finance, I can testify firsthand for the need for Rebecca’s services. For one, it is sometimes lost on people in the maelstrom of seeking funding that the end result of all the diligence and effort will be the establishment of a contractual relationship — and a complicated one at that.

Moreover, getting the contract right is just the first step in the process of getting to a successful result, with all stakeholders needing to both live up to their end of the bargain in terms of the financial deal while also fighting to win the litigation itself. Having someone with Rebecca’s very apt and particular skill set involved in the process can only help keep things moving in the right direction, allowing each party to the transaction to focus on doing what they do best, whether that be writing the checks or arguing at trial. It is important to remember the inherently risky nature of litigation finance — for all parties, despite the sometimes rosy marketing employed by litigation funders looking for investment opportunities — and having an experienced hand involved in the process can only help a particular deal’s chances of success. In fact, anyone who brings someone of Rebecca’s caliber to the table would be sending a strong signal that they intend to do their utmost to get to a successful result, with full expectation that the counterparties will do the same. Put another way, when circumstances allow, I’d rather be the one with Avenue 33 on my side in a deal, rather than having to go it alone.

Next week, I will conclude my interview with Rebecca, focusing on how she sees the litigation funding space continue to evolve, as a result of both more regulation and more money at stake.

Please feel free to send comments or questions to me at gkroub@kskiplaw.com or via Twitter: @gkroub. Any topic suggestions or thoughts are most welcome.


Gaston Kroub lives in Brooklyn and is a founding partner of Kroub, Silbersher & Kolmykov PLLC, an intellectual property litigation boutique, and Markman Advisors LLC, a leading consultancy on patent issues for the investment community. Gaston’s practice focuses on intellectual property litigation and related counseling, with a strong focus on patent matters. You can reach him at gkroub@kskiplaw.com or follow him on Twitter: @gkroub.

T14 Law School Grad Tells New York Times How Bar Exam Is Screwing Class Of 2020

I have $300,000 in loans, and I have no idea how I’ll start paying them off. I can’t work, so I can’t get health insurance. The whole time I was sick I was like, “What if I have to go to the hospital again?” People plan their lives around this exam. Now, on top of the stress of the pandemic, we’re unable to make money. Every single day I’m panicking.

— Jena Speiser, a 2020 graduate of NYU School of Law, in comments given to the New York Times related to what she’s suffering through in her attempts to take the bar exam during a pandemic. Speiser planned to apply to take the Massachusetts exam after being encouraged by the New York State Bar Asssociation to take the test in another state due to the unlikelihood of an in-person New York exam in July. She then fell ill with the coronavirus and was bedridden for weeks and later hospitalized, which caused her to miss the deadline to apply for New York’s online October exam. Speiser won’t be able to take the New York bar exam until February 2021, and has started babysitting in an attempt to earn money to repay her loans.


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

Ding Dong Lawyer Dinged For Showing Dong

The ABA Journal reports that the South Carolina courts have disbarred attorney Jacob Leon Parrott based upon a history of sexual misconduct including indecent exposure and voyeurism.

The disbarment order, entered on August 12 but publicly reported over the weekend, is retroactive to his 2018 arrest for “indecent exposure for exposing his genitals and masturbating in public.”

The South Carolina Supreme Court cited two matters involving similar behavior in Parrott’s disciplinary history. In 1997, he was suspended for four months after he entered an Alford plea to a charge of simple assault and battery for pulling down a woman’s bathing suit three years earlier. The court also noted that he was previously accused of trying to pull off another woman’s bikini bottom in 1989 but was not prosecuted for that offense.

He was also previously suspended over upskirt photos and failing to report that arrest to professional licensing authorities.

It’s hard to believe that someone like this could have ever practiced law — it’s almost as if the bar exam and protecting the public from bad lawyers aren’t connected in any way. Weird.

(Check out the opinion on the next page.)

Lawyer is disbarred after history of indecent exposure, voyeurism [ABA Journal]


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Whistleblowers charge CEO of NJ firm with inflating AI capability, calling employees “dirty Indians” – MedCity News

Edward Scott took over as CEO of ElectrifAi in late 2018.

For years, Opera Solutions did business as a data analytics consulting company helping clients both in and out of healthcare. They include the Center for Medicare and Medicaid Services, where the company’s data analytics chops helped them score an operational analytics and fraud surveillance contract.

But financial mismanagement led creditors to come calling and ultimately one of them — a private equity firm based in San Francisco called White Oak Global Advisors — took over the company. In late 2018, Edward Scott, managing director at White Oak, was named CEO of Opera. [His LinkedIn profile has been amended recently to reflect that his tenure at White Oak ended in September.]

From then on, the company has been on a relentless makeover journey to present itself as an artificial intelligence, products company. It even got a new name — ElectrifAi (pronounced electrify). When Covid-19 emerged into the U.S. consciousness, the company began touting a product in the hospital world. But people who call themselves “whistleblowers” and decline to publicly identify their relationship with ElectrifAi say the emperor has no clothes. They allege that ElectrifAi (or Opera) has zero clinical experience historically and has never worked with imaging data, which is the very basis for the company’s PulmoAi product. But over the last six months, Scott and ElectrifAi’s senior executives have touted PulmoAi, which has no FDA clearance or approval, saying it can quickly diagnose Covid-19 in emergency rooms and help doctors make decisions about who needs hospitalization and who can be safely sent home.

The whistleblowers believe that PulmoAi and the way that it is being marketed is dangerous to people during a pandemic. Aside from their troubling allegations about the product, the group also claims that Scott’s managerial style has led to clients to stop renewing contracts.  Further, Scott’s racist attitude toward employees of Indian descent and other minorities has left employee morale at a nadir. An employment discrimination lawsuit filed on Aug. 24 corroborates the whistleblowers’ characterization alleging that Scott repeatedly called Indians, “dirty” and those in leadership positions that he fired after taking over as “the Indian Mafia.” 

For their part, the whistleblowers hope for Scott to be replaced by someone more capable, respectful and honest. Through a crisis communications expert with a formidable reputation, the company declared that PulmoAi is legitimate, is being used by unnamed healthcare entities, and is featured in Microsoft Azure’s cloud marketplace. ElectrifAi also denied all charges of racism, discrimination and misogyny as categorically false. 

“Automating early diagnoses of Covid-19”
In March, a public relations professional sent an attractive pitch — “Using computer vision, ElectrifAi has created a program that can detect pneumonia-like symptoms through CT scans of the lungs and are now working with hospitals worldwide to collect relevant images to further train the AI and fully automate early diagnoses of Covid-19 which presents similarly.”

Wow.

Rapid testing wasn’t as yet easily available, so this would be a phenomenal tool to have in ERs. But AI needs a lot of training and tons of data points. Given that Covid-19 was still relatively new, how could they get enough CT-scans to be able to train the data and distinguish it from pneumonia?  The PR person responded by borrowing from a post on the company’s LinkedIn page.

Using ElectrifAi’s “minimal model” technology, they’re able to train an AI with no more than 100 2D annotated images of various cross-sections of the lungs.

Wow again.

The public relations professional was pitching both an interview with Scott and a neuroradiological expert at Catholic Health Services of Long Island, a hospital group in New York. At the time, Catholic Health Services was just about to implement ElectrifAi’s PulmoAi technology meant for X-Rays in emergency rooms — any day now, I was told.

So a few weeks later, MedCity News published this story in early April that attempted to probe Scott’s declarations. In the interview, he provided no details about the technology, named no European hospitals or other overseas hospitals where he said the AI was trained and/or deployed. And Dr. Craig Sherman, service line director of Neuroradiology at Catholic Health Services, while “impressed” by the company’s tool and eager to deploy it imminently,  acknowledged he was a paid consultant of ElectrifAi. As soon as the bureaucratic paperwork could be dealt with, Sherman would be sending over X-Rays to ElectrifAi.

Five months after that interview with Sherman and Scott, it’s not clear whether Catholic Health Services of Long Island actually ever used ElectrifAi’s PulmoAi. After inviting me to connect on LinkedIn once the initial story was published in April, Dr. Sherman recently did not respond to messages. He did not respond to a call either.

Separately, after several weeks of unanswered voicemails and messages to media contacts at the health system, one responded:

Thanks for your inquiry. Please connect with those who you spoke with for your original story. – Greg Sleter, Public Relations & Brand Reputation Manager, Catholic Health Services

Sleter didn’t respond to a follow-up email.

“We are unapologetic for our innovation”
After the MedCity story published on April 6, a somewhat defensive and lengthy blog post emerged from ElectrifAi a few weeks later. The company’s main argument that they return to throughout the piece is that it’s just pure math, 1+ 1=2 and they are simply trying to help people.

John Quackenbush, Henry Pickering Walcott professor of computational biology and bioinformatics and chair, Department of Biostatistics, at the Harvard T.H. Chan School of Public Health, decoded the post. He found the arguments,  “pretty nonsensical.” In an email, he wrote:

  • They claim they trained their algorithm with 10 Covid patients. Anyone doing machine learning will tell you that [the] sample size is far too small to draw any meaningful conclusions. They might argue that they distort the images and that they add noise, so the effective number is larger, but the question is whether this captures the diversity of images that one would see in practice. The answer is simply that ten of anything this complex isn’t enough. Will it work on a Siemens or a Phillips or a GE machine? At what settings? If the machine is new or old? If the patient has been on a ventilator? If they were a smoker? If they had emphysema?
  • [They] claim they only trained with Covid images. So the question is what did they train against? Simply put, if the algorithm is designed to answer the question, “Yes or no, does my patient have Covid?”, then you need examples of both “Yes” and “No.” If the algorithm is trained on a data set where the only answer is “Yes,” then the only answer it can give is “Yes.”
  • They state, “We have no interest in publishing research in an effort for self-promotion and peer accolades. Our sole interest to open up the technologies so they can help people around the world.” But they never make their code available and they haven’t published anything, so nobody has the opportunity to actually review what they have done and they certainly haven’t “opened up” any technology.

While ElectrifAi is not interested in publishing research for that would be self-promotional, it appears that executives don’t have any qualms promoting PulmoAi in non-academic, non-peer-reviewed settings. Between March and May, Scott and other executives have appeared in at least five podcasts including the Empowered Patient podcast, THINK Business with Jon Dwoskin, one hosted by AI recruiting and staffing company Alldus, and a YouTube video. Over a five-month period as of mid-August, the company had 14 LinkedIn posts specifically promoting its AI capability in healthcare, though healthcare is not the only industry it serves. There have been positive external news coverage as well. 

This marketing narrative including laudatory news articles is what the ElectrifAi whistleblowers want to counter. They believe that Scott sees the pandemic as an opportunity to be milked.

“The company has rapidly lost revenues since Ed Scott took over. There are hardly any new clients. Most existing clients have not renewed their projects with the company due to extremely combative new management,” alleged one whistleblower in an email. “[Pulmo AI] is one of those schemes to quickly showcase something seemingly disruptive and make a quick buck. This will not stand any reasonable questioning or unbiased peer reviews done by qualified personnel in the field.” 

Another added that historically the company has had no clinical expertise, let alone medical imaging expertise, that Scott et al are showcasing:

“ElectrifAi has had experience with text data — classification & clustering algorithms. We have never worked on any image related machine learning algorithms. Georgios Ouzounis was hired as an expert in the field but it seemed he wanted to use the company resources to create a product based on his Ph.D. thesis. There was no team in place and no tangible expertise in the analytics team for any sort of image recognition or image machine learning capabilities. Hence, any product using CT and X-Rays is just a marketing gimmick.” [Ouzounis is vice president of data science who has appeared in at least one podcast about ElectrifAi’s AI prowess in healthcare and Covid-19.] 

Another explained that in its previous incarnation — as Opera Solutions — the company developed a healthcare product, but not on the clinical side.

“Opera Solutions has a product for identifying missing charges in hospital bills. This was a result of an analytics consulting project that was productized. People who were involved in the development of the product have since left or have been fired.” 

This product is still in commercial use. Indeed the company’s website explains that it can help providers detect missed charges and boost revenue. In the March phone interview with Scott, I asked him to explain how a company goes from having billing, fraud detection and procurement software to diagnosing Covid-19 using CTs and X-Rays. It was a leap, I felt, and he bristled.

“We continue to innovate, Arundhati … and we are unapologetic for our innovation,” he declared.

It’s important to note that while the whistleblowers call into question the healthcare AI product, ElectrifAi has been accepted into the Inception accelerator program of a Silicon Valley AI heavy-hitter – Santa Clara-based Nvidia.

“Inception is a virtual accelerator program that supports over 6,000 startups using GPUs for AI and data science applications during different stages of product development, prototyping and deployment, but being part of the program does not mean the company’s technology or business model has been fully vetted by us,” said Hector Marinez, director of corporate communications at the firm, in an email.

“ElectrifAi is proud of the contributions it has made in the fight against Covid-19”
After several weeks of radio silence in which Scott did not return emails either sent directly or through the original public relations professional, response came from Michael Sitrick, the crisis management expert hired to ensure that ElectrifAi’s side of the story gets fair play. [Personnel at White Oak Global Advisors, which owns the company, and White Oak’s lawyers also didn’t respond to emails.]

Sitrick displays some of the not-so-complimentary media profiles of himself as the “Ninja Master of the Dark Art of Spin” prominently on the website of the company he founded and which bears his name. The Columbia Journalism Review describes his prowess and manipulative capabilities writing that “he specializes in crisis PR and has made a name for himself as the man you call when you have money and step in some s***.”[CJR spells out the word and this portrayal is also on Sitrick and Company’s website.]

Sitrick, only too aware of his reputation and how reporters are hard-wired to represent both sides, rushes in to say via email that he has blue-chip life science-industry clients like Amgen, Glaxo-Smith Kline, Anthem and Tenet Healthcare. But he and his firm have had less savory clientele too: Los Angeles Catholic archdiocese during the sexual abuse cover-up scandal; Harvey Weinstein until payments weren’t made, and R. Kelly.

No ElectrifAi executive was made available for an interview, but in an email from Sitrick, Jim McGowan, head of product at ElecrifAi, contended that PulmoAi technology has been “favorably received by healthcare providers inside and outside the U.S.” “A premier Cancer Institute” was “impressed;” ElectrifAi had “multiple calls with radiologists in [Italy], who showed intense interest.” But the company declined to name any institution or healthcare professional that it was working with.

McGowan said that ElectrifAi realized in mid-March that it’s “minimal model algorithm” doesn’t work with X-Rays but it was able to resolve the problem and this was tested by Microsoft and a “practicing radiologist” after which the product was successfully added to the Microsoft Azure marketplace.

“The product was granted two awards by Microsoft, including a $100,000 grant …,” said the email.

Only it wasn’t really a cash grant as the above suggests. An email from Shannon Fitzpatrick, senior healthcare partner development manager at Microsoft, that Sitrick forwarded when asked for proof, shows that it’s a credit. The email dated April 22 says Microsoft was offering ” a one-time Microsoft Azure monetary commitment credit to cover unexpected increases in Azure consumption that stem from the increased utilization of your solutions in the healthcare and life sciences.”

In other words, should people download PulmoAi from the Azure marketplace and use it so much that ElectrifAi’s cloud subscription fees increase, then Microsoft is willing to waive them for a year up to $100,000.

When reached by phone Fitzpatrick didn’t want to be quoted without express approval from Microsoft’s communications team. David Houlding, director of healthcare experiences who is responsible for healthcare products on Microsoft’s cloud platform similarly declined to comment. Neither Microsoft nor ElectrifAi would comment on how many PulmoAi downloads have occurred. But one thing is clear: Like Nvidia, Microsoft has not vetted the company’s Covid-19 AI technology.

McGowan also claimed that the company has communicated with the FDA to get an emergency use authorization but offered no proof of such communications — in fact, the blog post from late April shows that at least at that time, ElectrifAi officials never had any intention to go to the FDA.

These technologies are not “US FDA Approved.”

They could never be in the timeframe available to ever have an impact.

“Inadvertent exception”
If the technology is as valuable during Covid-19 as ElectrifAi executives claim, why is it that they won’t name any active users of the product or the radiologists and cancer centers it is working with? Sitrick has an easy answer: the company doesn’t have permission from those very individuals and institutions.

During the pandemic and attendant public health crisis, the healthcare industry has been more open than usual in naming technologies and platforms being used in the spirit of collaboration. Press releases are replete with tech vendors’ touting their tech being piloted here or deployed there, naming specific hospitals. ElectrifAi’s stance of complete secrecy is counter to that observed change.

The company’s reticence also flies in the face of the joint interview Scott and Dr. Craig Sherman, service line director of Neuroradiology at Catholic Health Services of Long Island did with MedCity News in the spring even before the X-Ray based PulmoAi tool was supposed to be pushed out to ERs across Catholic Health Services hospitals. [Recall that Sherman described himself as a paid consultant of ElectrifAi in the interview.] 

When asked to comment on this inconsistency Sitrick described is as an “inadvertent exception to the rule” of not naming clients without permission. [Which raises the question, did Sherman have the blessing of Catholic Health Services when he spoke to MedCity or was he speaking as a paid ElectrifAi consultant?]

“Opera is safe for White people Again”
Other than trying to peddle, what they believe is, a questionable AI product in a pandemic, the whistleblowers also charge that Scott engaged in threatening, racist, misogynistic behavior and introduced employee-tracking and monitoring products into the workspace. Their allegations are corroborated in an employment discrimination lawsuit filed on Aug. 24 by Aparna Kumar, a senior vice president at ElectrifAi. Kumar names not only various entities including ElectrifAi and White Oak Global Advisors as defendants but also Scott and Nancy Hornberger, executive vice president of revenue and co-head of healthcare in her civil complaint.

In the lawsuit Kumar, an Indian woman who became an American citizen in 2002, states that she was hired in 2008 and until recently was an account manager for ElectrifAi’s largest client, the Centers for Medicare & Medicaid Services, overseeing 34 employees. She describes her upward trajectory in the firm from business school intern to SVP, and then a sharp reversal of fortune when Scott took over as CEO in the Fall of 2018. She was demoted and her role taken over by white people, she charged, who were, in one case, recently hired. The complaint states that Scott used the words “dirty Indians” on multiple occasions as well as the term “Indian mafia” to refer to the company’s previous senior leadership. Here’s a specific example:

… in April 2019, Kumar and Scott had a one-on-one conversation in which Scott described a story of having rehired a former Company employee, who is White. Scott said to Kumar that he told the rehired employee, “I got rid of all the dirty Indians and it is safe for White people at Opera again.”

Scott fired hundreds of people of color, including Indians, and the racial animus appears to have been directed at employees of non-Indian descent as well. The complaint states that sometime in the spring of 2019, Scott fired a black woman who led an ElectrifAi team that contracted with Johnson & Johnson. Scott had previously referred to this woman as a “fat lazy Black bitch.”

If true, the allegation stands in stark contrast to ElectrifAi’s public posturing, where it has displayed support for the Black Lives Matter movement and separately for LGBTQ people on its LinkedIn page.

The complaint also notes how Scott had web cameras installed in the office seating area in the presence of employees, and in July 2019 instructed employees to install an application named Carbonite. This allowed him to replicate an employee’s computer hard drive and access websites that the individual visited. The company’s HR for a time was in essence just Scott – the complaint notes how the CEO “forced out” the head of human resources and the two remaining HR personnel resigned thereafter.

The lawsuit goes on to depict how over time, Kumar saw her role diminished and she was excluded from meetings with the very client — CMS — with whom she led the relationship on behalf of ElectrifAi. When folks from the CMS lauded her skill and expertise, Scott and others felt compelled to include Kumar in meetings only to sideline her thereafter. She cites numerous examples of Scott using the f-word in meetings and humiliating her, according to the complaint, while treating men very differently.  She was stripped of responsibilities last year and ultimately earlier this summer, Kumar was removed as the account manager for the HHS-CMS account and made Daily Project Director instead. She had held the account manager for the HHS-CMS account since 2016. While formally still a senior vice president, Kumar is supervised by Margaret Cox, a White woman who holds the title of vice president and now manages the HHS-CMS relationship, she asserts in the complaint.   

Kumar attempted to bring the discrimination and misogyny to the attention of White Oak Global Advisors and met with a lawyer hired by the private equity firm to air her concerns about her employment in 2019. That was Kathleen Einhorn, a lawyer from Genova Burns hired to investigate Scott on behalf of White Oak. When the hours-long interaction led to no discernible change – in fact she was removed from the Management Committee — Kumar then filed a complaint with the Equal Employment Opportunity Commission on or about Jan. 15, according to the complaint. The lawsuit was filed on Aug. 24. 

Einhorn did not return an email seeking comment. Neither did Pamela Hart who leads human resources at White Oak Global Advisors. Meanwhile, Kumar remains an ElectrifAi employee and is seeking punitive damages and other relief from the courts. Her attorney after initially responding to a call requesting an interview with Kumar stopped responding to subsequent queries.

Sitrick categorically denied Kumar’s allegations about Scott and his behavior, calling them “incendiary claims.” He provided what appear to be grainy screenshots of Kumar’s texts with Scott to disprove her depiction as a hapless employee victimized by a misogynistic, racist boss. This is from May 22, 2019, seven months after Scott joined as CEO:

The last line is One team, one Opera(the previous name of ElectrifAi.)

Another from Aug. 17, 2019

That was the last screenshot Sitrick shared showing Kumar being appreciative of Scott. Sitrick said that Kumar “remains one of the 5 highest paid employees in the company,” “about 40% of ElectrifAi’s workforce are women and that  “women hold 5 of the top 11 positions in the company.”

As mentioned above per the lawsuit, on “October 16, 2019, Kumar and three members of her team visited White Oak’s offices in Manhattan. They hoped to speak in-person to a high-level executive about Scott’s unlawful conduct.” Six days after that visit, ElectrifAi announced that the company was appointing female leaders to executive leadership positions. In advance of this story appearing and more than two weeks after India celebrated its 74th Independence Day on Aug. 15, ElectrifAi posted drawings of children of employees celebrating the day on its LinkedIn page.

“ElectrifAi’s infringement was and continues to be willful”
Kumar wouldn’t comment, but the whistleblowers allege that pleasing Scott was crucial to working at ElectrifAi. They also refer to his mercurial nature.

“To be honest, the atmosphere felt like Soviet Russia, where people who were praised one day would be replaced the next,” wrote a source in an email. “Things deteriorated further when entire lower/mid rung consultants were fired. Campus offers were also rescinded. After this, only sycophants who agreed with Ed were hired or were retained.”

While the employment discrimination lawsuit alleges many objectionable behaviors by Scott, it doesn’t address the efficacy or lack thereof of ElectrifAi’s PulmoAi product. Sitrick pushed back on many of the whistleblower’s allegations about the technology but did not address their central criticism: that ElectrifAi/Opera has historically no experience with medical imaging or with clinical diagnoses. 

The whistleblowers are a bit divided over why Scott and the senior leadership team at ElectrifAi are promoting a product they believe was built without real clinical expertise. Some say it’s a desperate ploy to garner revenue amid Electrifai’s falling business fortunes [which Sitrick denies] while others say it is an example of outright deception.

The latter perspective seems to have gotten some legs. On July 28, a Palo Alto, California company filed a breach of contract and trade secret misappropriation lawsuit against ElectrifAi.  The complaint states that Actian, a data integration, management and analytics company terminated a licensing contract with ElectrifAi in November 2019 because the latter failed to make payments and fees for the use of its products, among other reasons. Actian alleges that even after it terminated the licensing agreement, ElectrifAi is still using its products, thereby constituting an infringement of its software copyrights.

“ElectrifAi’s infringement was and continues to be willful and intentional,” the complaint declared.  

 Photo: ElectrifAi

ExamSoft Partner Suffered 440K User Data Breach… ExamSoft Still Says Everything’s Fine

ExamSoft continues to say that the reports circulating from users who’ve found passwords compromised or credit cards stolen in recent days have nothing to do with their platform. Given the vendor’s prior statement that it was targeted by a sophisticated cyberattack the last time it ran an online bar exam, most applicants aren’t all that reassured.

And they’ll find themselves less comfortable if they didn’t already realize that ExamSoft partner ProctorU suffered a 440,000 user data breach that the company confirmed last month. Which officially makes the much criticized online LSAT the second worst news for ProctorU this year.

There are, of course, many different plans for the upcoming online bar exams across the country and applicants using the ExamSoft system may not have any data sent to ProctorU. And ProctorU claims the breach was from 2014 — though BleepingComputer analyzed the data and found matches from as late as 2017.

But that’s not really the point, is it? The point is that the company that keeps telling applicants and state licensing authorities that it’s got an ironclad system has gotten clipped by a cyberattack, received multiple reports of possibly compromised systems, and had its trusted business partner admit to a major data breach. And through all of this, ExamSoft refuses to submit to a full-scale stress test and, recklessly, state supreme courts are going along with this.

Enough is enough. If there’s really going to be a bar exam next month, we need to see a coordinated test right now to start providing comfort that this won’t be an epic disaster. To borrow from an online commenter — a test where they may get their ID stolen and then fail because they sneezed and broke eye contact with the webcam is now almost as attractive an option as an in-person superspreader event. That’s stress that they don’t need right now.

Earlier: ExamSoft Responds To Multiple Reports That Software Compromises Security
Everyone: Maybe We Should Test This Bar Exam Software; State Supreme Court: LOL, No.


HeadshotJoe Patrice is a senior editor at Above the Law and co-host of Thinking Like A Lawyer. Feel free to email any tips, questions, or comments. Follow him on Twitter if you’re interested in law, politics, and a healthy dose of college sports news. Joe also serves as a Managing Director at RPN Executive Search.

Biglaw Firm Restores Pay Cuts — Retroactively

Good news for associates at Hogan Lovells — a firm that took in $2,246,050,000 in gross revenue last year, making an impressive 8th on the latest Am Law 100 ranking — the COVID-19 salary cuts are a thing of the past.

Back in May, the Hogan Lovells announced a pu pu platter of salary cuts. Equity equity partners’ monthly draws were slashed by 15 to 25 percent, and they also deferred the payment of profits. Nonequity partners and highly compensated senior counsel and specialists got a 15 percent cut. While the rest of the counsel, associates, attorneys, specialists and knowledge lawyers saw a 10 percent cut.

Now, thanks to a “solid performance” over the summer, HoLove is reversing most of those salary cuts — and making the change retroactive to May, meaning a tidy little make-whole payment is on its way. So who is lucky enough to benefit from this retroactive salary change? Associates, counsel, attorneys, specialists, and knowledge lawyers in the U.S., Mexico and Brazil. As reported by Law.com, for the Asia-Pacific region, Dubai and the U.K., the salary reviews postponed from May will be scheduled, and any payments will be retroactive. As for 2020 bonuses, they’ll be made in the “normal course of business, applying the normal standards.”

Not everyone is seeing the benefits of the firm’s performance gains right away. Equity partners are still going to have draws and bonus payments reduced through 2020. And the cuts for nonequity partners and senior counsel will be reviewed later this year.

Hogan Lovells CEO Miguel Zaldivar made the following statement on the salary reversal:

Having looked carefully at our work over the summer, we have seen a solid performance and now is the time to start a step-by-step approach to reverse some of the prudent measures we implemented earlier this year around compensation. This is a strong testament to the work which we have all been doing under very challenging conditions and we are looking towards a continued solid performance through to the end of the year.

If your firm or organization is slashing salaries or restoring previous cuts, closing its doors, or reducing the ranks of its lawyers or staff, whether through open layoffs, stealth layoffs, or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive. You can email us or text us (646-820-8477).

If you’d like to sign up for ATL’s Layoff Alerts, please scroll down and enter your email address in the box below this post. If you previously signed up for the layoff alerts, you don’t need to do anything. You’ll receive an email notification within minutes of each layoff, salary cut, or furlough announcement that we publish.


headshotKathryn Rubino is a Senior Editor at Above the Law, and host of The Jabot podcast. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter (@Kathryn1).

The 60 Best Law Firms For Women (2020)

(Image via Getty)

Year in and year out, we watch law firm after law firm pay lip service to their commitment to diversity in the legal profession, with promises to put women attorneys on equal footing with their male counterparts, whether it be through hiring and retaining more women attorneys, promoting more women attorneys to equity partnership ranks, providing more leadership positions to women attorneys, or adopting more family-friendly policies to ensure that women attorneys are able to excel at their jobs while maintaining a stable work/life balance. Despite these continued assurances, and despite the fact that a number of firms have made great efforts to improve women’s stature in the law, there is still much more to be done.

Today, Working Mother released its thirteenth annual list of the 60 Best Law Firms for Women. These law firms are considered pioneers in the field when it comes to attracting, retaining, and promoting women lawyers. These law firms not only stand out as being family-friendly workplaces, but they also ensure that women shine in their equity partnership ranks.

Which firms made the cut for this year’s ranking?

To earn themselves a spot on the Working Mother Best Law Firms list, self-selected applicant firms with 50 or more lawyers must complete an extensive application (more than 300 questions long) with topics ranging from attorney representation, schedule flexibility, paid time off and parental leaves, and development and retention of women. Working Mother then selected the 60 best firms based on data provided by those firms from the year 2019 (i.e., pre-pandemic data). “Law firms on this year’s list were better prepared to respond to the effects of the pandemic because of their continued support of flextime and remote work for working parents and caregivers,” said Subha V. Barry, president of Working Mother Media. “We are proud to recognize their resilience and steadfast commitment to supporting gender equality.”

Here are some of the interesting results gleaned from Working Mother’s study:

Flexibility Has Been Increasing

  • Pre COVID-19, all these firms offered reduced hours and remote work for lawyers. Thirty-nine percent of female lawyers used remote work in 2019.

Top Law Firms Hold Leaders Accountable for These Factors

  • Career progression of women lawyers who are direct reports…72%
  • Managing work-life issues of direct reports…67%
  • Career progression of lawyers working reduced hours who are direct reports…66%

Advancement Matters

  • The number of women lawyers promoted to equity partner has increased by almost 25% in the past five years.
  • All firms on the list offer formal mentoring and 50 percent of mentees are women.
  • Two-third of the firms on the list have formal sponsorship with 62% of participants female.

Women have made great progress at Biglaw firms in recent years, but which firms have been most receptive to their advancement? This year’s list highlights firms that averaged 23 percent women among equity partners, compared with only 20 percent five years ago. Women of color make up 14 percent of equity partners (up from 11 percent five years ago). Here’s the list of the 60 Best Law Firms for Women in 2020:

Akerman
Arnold & Porter Kaye Scholer
Baker McKenzie
Baker, Donelson, Bearman, Caldwell & Berkowitz
Ballard Spahr
Bass, Berry & Sims
Blank Rome
Brownstein Hyatt Farber Schreck
Bryan Cave Leighton Paisner
Chapman and Cutler
Constangy, Brooks, Smith & Prophete
Cooley
Crowell & Moring
Culhane Meadows
Davis Graham & Stubbs
Davis Wright Tremaine
Day Pitney
Dechert
DLA Piper
Dorsey & Whitney
Duane Morris
Faegre Drinker Biddle & Reath
Fenwick & West
Finnegan, Henderson, Farabow, Garrett & Dunner
Fish & Richardson
Frankfurt Kurnit Klein & Selz
Goodwin Procter
Hanson Bridgett
Holland & Hart
Holland & Knight
Jackson Lewis P.C.
Katten
Kirkland & Ellis
Latham & Watkins
Littler
Lockridge Grindal Nauen
Lowenstein Sandler
Manatt, Phelps & Phillips
McDermott Will & Emery
Michael Best & Friedrich
Morgan, Lewis & Bockius
Morrison & Foerster
Ogletree, Deakins, Nash, Smoak & Stewart
O’Melveny & Myers
Orrick, Herrington & Sutcliffe
Perkins Coie
Pillsbury Winthrop Shaw Pittman
Quarles & Brady
Reed Smith
Ropes & Gray
Seyfarth Shaw
Sheppard, Mullin, Richter & Hampton
Shook, Hardy & Bacon
Sidley Austin
Steptoe & Johnson
Stinson
Taft Stettinius & Hollister
Vinson & Elkins
Wiley
WilmerHale

Congratulations are in order for all of the firms returning to the list this year, as well as the firms that are new to the 2020 list. Way to represent your women attorneys!

If your firm didn’t make the cut, do you think it should have? If your firm did make the cut, was it deserved? What can be done to improve work/life balance for women and working mothers? If you’d like to let us know what you think, you can email us, text us at (646) 820-8477, or tweet us @atlblog. Congratulations to all of the law firms that made this important ranking!

2020 Best Law Firms for Women [Working Mother]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

New York Prosecutor Dies After Being Hit By Bus While Biking

(Image via Getty)

We have some unfortunate news to report today from New York, where over the long holiday weekend, a young prosecutor was killed after being hit by a bus.

Sarah Pitts was a senior assistant district attorney with the King’s County District Attorney’s Office. The New York Daily News has additional details on the Penn Law graduate’s death:

Pitts, 35, was biking east on Wythe Ave. near Williamsburg St. when she was hit at about 12:35 a.m. Medics rushed her to Bellevue Hospital, where she could not be saved. …

The bus that hit Pitts belonged to Excellent Bus Service, police said. The driver had no alcohol in his system, and had a valid license, cops said.

He remained on the scene, and police were still investigating the crash Monday afternoon. He has not been charged.

Brooklyn District Attorney Eric Gonzalez released the following statement via Twitter:

Manhattan D.A. candidate Tali Farhadian Weinstein, who used to work with Pitts, described her friend as an “extraordinary person,” saying, “For me, she was the beating heart of the Post-Conviction Justice Bureau.”

We here at Above the Law would like to extend our sincere condolences to Sarah Pitt’s family, friends, and colleagues during this difficult time.

‘She was really a light’: Friend, Brooklyn DA mourn prosecutor killed in bicycle collision with bus [New York Daily News]


Staci ZaretskyStaci Zaretsky is a senior editor at Above the Law, where she’s worked since 2011. She’d love to hear from you, so please feel free to email her with any tips, questions, comments, or critiques. You can follow her on Twitter or connect with her on LinkedIn.

The DEA Interim Final Rule: A Menace To The Burgeoning Delta-8 THC Industry

In my most recent Above the Law post, I discussed the recent publication of an interim final rule (the Rule) by the DEA, which, I argued, threatens the hemp industry by treating partially processed hemp extract not intended for consumption as a Schedule I controlled substance.

But the Rule does more than menace partially processed hemp, it also has the potential to destroy the flourishing delta-8 tetrahydrocannabinol (Delta-8 THC) industry.

Here is why.

The Rule provides that:

For tetrahydrocannabinols that are naturally occurring constituents of the plant material, Cannabis sativa L., any material that contains 0.3% or less of D9-THC by dry weight is not controlled, unless specifically controlled elsewhere under the CSA [the Controlled Substances Act]. Conversely, for tetrahydrocannabinols that are naturally occurring constituents of Cannabis sativa L., any such material that contains greater than 0.3% of D9-THC by dry weight remains a controlled substance in schedule I. The [2018 Farm Bill] does not impact the control status of synthetically derived tetrahydrocannabinols (for Controlled Substance Code Number 7370) because the statutory definition of “hemp” is limited to materials that are derived from the plant Cannabis sativa L. For synthetically derived tetrahydrocannabinols, the concentration of D9-THC is not a determining factor in whether the material is a controlled substance. All synthetically derived tetrahydrocannabinols remain schedule I controlled substances. (Emphasis added).

Neither the Rule nor Federal law, including the CSA, expressly define “synthetically derived tetrahydrocannabinols.”

However, some of the DEA regulations address the issue of “synthetic THC” in the context of “synthetic marijuana,” also known as “Spice” or “K2,” which is listed under Section 812(c)(d) of the CSA; and in the context of the schedule I listing of “Tetrahydrocannabinol” (THC), under Section 812(c)(c)(17) of the CSA.

In the context of “synthetic marijuana,” which the DEA describes as a “synthetic version of THC,” “synthetic THC” refers to a mixture of plant material sprayed with synthetic psychoactive chemicals. In a 2017 Resource Guide, the DEA further explains that “[s]ynthetic cannabinoids are not organic, but are chemical compounds created in a laboratory.” (Emphasis added).

In the context of the schedule I listing of “Tetrahydrocannabinol,” the DEA revised its regulations in 2003 to specify that the term refers to both “natural” and “synthetic” THC; however, the agency’s clarification did not touch on the actual meaning of “synthetic.”

Therefore, based on the information found in the DEA regulations and publications, it appears the agency refers to the ordinary meaning of “synthetic,” which the Merriam-Webster Online Dictionary defines as a substance “relating to, or produced by chemical or biochemical synthesis.”

As a result, this definition suggests that the Rule, specifically the text highlighted in bold herein, may extend to hemp-derived THC cannabinoids with a Delta-9 THC concentration that does not exceed 0.3%.

This, in turn, would mean that the hottest cannabinoid currently found on the U.S. market, Delta-8 THC, would probably be treated as a schedule I controlled substance by the DEA.

This is because Delta-8 THC, which is not expressed in sufficient concentrations in most hemp cultivars to make its extraction economically viable, is produced through a chemical reaction initiation by a catalyst that converts hemp-derived CBD (Hemp CBD). As such, Delta-8 THC would be a “synthetically derived THC” substance, in accordance with the Rule.

Although such interpretation of the Rule would suggest a total disregard of the Agriculture Improvement Act of 2018 (the 2018 Farm Bill), which legalized hemp, including hemp derivatives (a “derivative” is defined as “a substance that can be made from another substance”), it is also fairly clear that the 2018 Farm Bill did not intend to legalize any form of cannabis that gets users high, as reflected in the provisions imposing a Delta-9 THC limit of no more than 0.3%.

Moreover, given the similarities between Delta-8 THC and Delta-9 THC’s chemical structures, molecular formula and molecular weight, their psychoactive effects, and the DEA’s position on and its historical control of all forms of THC, the Rule only confirms what many of us expected: that hemp-derived cannabinoids with psychoactive effects, even if less potent than those of Delta-9 THC, would be deemed unlawful by federal enforcement groups.

Ultimately, the Rule and the issues raised in this blog post and in the prior one bring to light lingering confusion and statutory ambiguities surrounding hemp, its derivatives, extracts and cannabinoids, which should be addressed by Congress or by the courts before the DEA gets to adopt such regulations.

It is abundantly clear through this Rule that the DEA is attempting to impede on the hemp industry, so it is vital for hemp stakeholders to submit their comment by October 20 to halt the DEA and help the hemp industry follow its course and succeed.


Nathalie Bougenies practices out of Harris Bricken’s Portland office and focuses on the regulatory framework of hemp-derived CBD (“hemp CBD”) products. She is an authority on FDA enforcement, Food, Drug & Cosmetic Act and other laws and regulations surrounding hemp and hemp CBD products. She also advises domestic and international clients on the sale, distribution, marketing, labeling, importation and exportation of these products. Nathalie frequently speaks on these issues and has made national media appearances, including on NPR’s Marketplace. For two consecutive years, Nathalie has been selected as a “Rising Star” by Super Lawyers Magazine, an honor bestowed on only 2.5% of eligible Oregon attorneys.  Nathalie is also a regular contributor to her firm’s Canna Law Blog.