Unsavory remarks, behavior, and sentiments from television personalities may not constitute a violation of entertainment law, but they can still result in significant career damage, as evidenced by the ongoing Paula Deen racism allegations scandal.
The Southern chef, known for her meals, cookware, and ancillary product lines was recently dropped from the Food Network for racism allegations remarks after holding a top-rated cooking show on the network for more than eight years. The allegations come from employees who worked at several of her restaurants, who claim that African-Americans, women, and other minority groups were often treated unfairly, and overheard Deen use racial slurs during their tenure. Adding to the situation was the release of a court deposition, in which Deen admitted to using racial slurs and off-color jokes in the past.
Although Deen has defended herself against the remarks and made a tearful apology to fans for her “insensitive” jokes, many of her sponsors have already drawn up agreements to end their relationship with the Savannah chef. Smithfield Foods, whose hams and other products Deen has endorsed since 2006, severed its relationship earlier this week. QVC and Kmart, both of which sell Deen-branded homewares, are currently “reviewing their options,” according to the Huffington Post. Most recently, Caesars Entertainment company released a statement saying it had “reached an agreement with Paula Deen Enterprises not to renew the business relationship.” The company plans to re-brand all of its existing Paula Deen-themed restaurants in the coming months, according to USA Today.
Deen has received a barrage of both criticism and support from fans, fellow chefs, and other television personalities. Some have argued that a person’s sentiments and language should not legally impact sponsorship and endorsement deals, as they do not violate any legal statutes. Others have asserted that discriminatory or racists remarks violate ethics clauses and provide companies with a legal basis to dismiss their sponsors.
Supreme Court and Title VII: Implications for Reverse Discrimination
Earlier this month, the U.S. Supreme Court issued a decision in Ames v. Ohio Department of Youth Services vitiating the so-called “background circumstances” test required by half of federal circuit courts.1 The background circumstances test required majority group plaintiffs pleading discrimination under Title VII of the Civil Rights Act to meet a heightened pleading standard […]
Special purpose acquisition companies (better known as SPACs) appear to be making a comeback. SPAC offerings for 2025 have already nearly surpassed last year’s totals, with additional transactions in the pipeline. SPACs last experienced a boom between 2020–2021, with approximately 600 U.S. companies raising a record $163 billion in 2021. Notable companies that went public […]
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Tariff Response Options for Small Businesses Facing Financial Distress
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Common Causes of Partnership Disputes and How to Resolve Them
Business partnerships, much like marriages, function exceptionally well when partners are aligned but can become challenging when disagreements arise. Partnership disputes often stem from conflicts over business strategy, financial management, and unclear role definitions among partners. Understanding Business Partnership Conflicts Partnership conflicts place significant stress on businesses, making proactive measures essential. Partnerships should establish detailed […]
Businesses Are Facing Financial Headwinds—A Practical Guide
*** The original article was featured on Bloomberg Tax, April 28, 2025 — As a tax attorney who spends much of my time helping people and companies who have large, unresolved issues with the IRS or one or more state tax departments, it often occurs to me that the best service that I can provide […]
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