Charities Benefit From Model Lawsuit

Filed Under: Legal Matters Inspiration Models

This is great!

Back in 2002, thousands of models sued a number of major modeling agencies for essentially cheating them out of money. According to court documents, the models the agencies, which include Wilhelmina, Ford, IMG, Next and Click, for:

1. conspiring to set the fees they each charge to models, and to fix other terms and conditions of the models' contracts, in violation of federal antitrust law;

1. concealing their unlawful conduct by drafting contracts purporting to characterize themselves as "managers" and disavowing any state licensing requirements – while advertising themselves as "agencies" and admitting (in court documents and elsewhere) that they regularly procure employment for models for a fee, making them employment agencies as a matter of law;

1. knowingly violating state law limiting the fees that Defendants, as employment agencies, can charge; and

1. deliberately violating their fiduciary duties to their models through various other unlawful practices, such as earning undisclosed profits from third parties, billing models for phony expenses, making a profit from services required to be provided at cost, and imposing excessive charges and fees, as detailed below.

In 2005, the models won a $21 million dollar settlement, but legal disputes prolonged the payouts. Finally, each model has been paid out, and after all the money was distributed, there was still $2 million to distribute. So, in an awesome and wise decision, Manhattan Federal Judge Harold Baer ruled that the money was to be distributed between five women's charities!

Columbia University has two programs benefiting from the ruling, with the University's eating disorders program receiving $347,826 and its heroin detox program taking in $173,913. New York University's School of Medicine will also recieve $347,826 for research studies oriented toward women. Additionally, The National Heart, Lung, and Blood institute will be given $86,956.

What a great way to use a surplus!

Shame on those modeling agencies for taking advantage of their clients, but we guess all's well that ends well.

[Image via AP Images.]

Posted: January 7, 2010 at 10:00 am