PHOTO FINISH: Snapchat co-founders Evan Spiegel and Robert Murphy settled an ownership dispute with Frank Reginald Brown, a former Stanford fraternity brother who claimed to be behind the idea that sparked the disappearing picture app. Brown filed a complaint at the Los Angeles Superior Court in February 2013, claiming he was shut out of an ownership stake in the company and was not compensated for his role before being ousted shortly after the Venice startup’s launch. Terms of the settlement were not disclosed.
SICK: Gov. Jerry Brown has signed a bill requiring employers to provide both full- and part-time workers with at least three paid sick days each year. AB 1522, authored by Assemblywoman Lorena Gonzalez, D-San Diego, will impact the roughly 40 percent of California workers who currently do not receive sick leave as a benefit. The bill requires employers to provide the leave at a rate of one hour for every 30 hours worked. When the law goes into effect July 1, California will become the second state, after Connecticut, to require paid sick days.
TINDER TURMOIL: West Hollywood mobile dating startup Tinder and its parent company InterActiveCorp have settled a sexual harassment and discrimination lawsuit filed by former executive and co-founder Whitney Wolfe. The lawsuit was settled without admission of wrongdoing and the amount of the settlement was not disclosed. Chief Marketing Officer Justin Mateen resigned from the startup shortly before the private settlement was reached, but Chief Executive Sean Rad, who was also named in the complaint, will stay on.
DAMAGES: A Los Angeles County Superior Court jury has awarded a Cambodian refugee couple a $39 million verdict against Pasadena’s East West Bancorp Inc. Choung Fann Yik and his wife, Ying Faung Ley, alleged the bank had breached a multimillion-dollar construction loan agreement with their business, F&F LLC, forcing it to default on the loan and leading to foreclosure on a commercial property. The couple had arranged a $34.5 million construction loan with East West in 2007 to build Victoria Promenade, a shopping and dining center in Rancho Cucamonga with offices, a hotel and gas station. They sued the bank in June 2011, contending East West failed to follow through on promises of continued funding after Victoria Promenade opened.
CLASS ACTION: DreamWorks Animation, Walt Disney Co. and Sony Pictures Animation were among a handful of animation studios named in a class-action lawsuit alleging they conspired to suppress the wages of visual effects workers by agreeing not to hire from each other. The antitrust lawsuit, filed in federal district court in San Jose, includes claims that while he was chief executive at Pixar, now a part of Disney, Steve Jobs formed a “no-raid” pact with DreamWorks Chief Executive Jeffrey Katzenberg in which they vowed not to actively pursue each other’s employees as a way of keeping pay rates uncompetitive.
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