Westchester County Business Journal 121415

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17 | SPECIAL REPORT DECEMBER 14, 2015 | VOL. 51, No. 50

YOUR ONLY SOURCE FOR REGIONAL BUSINESS NEWS

35 | FACES & PLACES westfaironline.com

FALSE AD CLAIMS HURT TOMMIE COPPER FTC obtains $1.35M settlement BY JOHN GOLDEN jgolden@westfairinc.com

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ne of Westchester’s most lauded entrepreneurial successes in recent years, Tommie Copper Inc., has been tarnished by charges of false and deceptive advertising in separate legal actions by the Federal Trade Commission and customers that will be settled in part by a $1.35 million payment this month by the Mount Kisco company to the FTC. The settlement does not resolve a federal class action lawsuit brought in July by four Tommie Copper customers across the country who said they were duped into buying the products for their advertised therapeutic effects but found them useless. Another Tommie Copper customer in Iowa filed a similar class action complaint in April against the company. The cases are expected to be consolidated in U.S. Court for the Southern District of New York. A federal judge in White Plains on Dec. 2 issued an approximately $86.8 million judgment against the 5-year-old athletic apparel company for claiming in infomercials and other advertis-

ing that its copper-infused compression clothing provided pain relief and other therapeutic benefits that were not proven in scientific studies. The judgment sum represents Tommie Copper’s reported gross sales in the U.S. for its compression garments from April 2011, when founder Thomas Kallish rolled out the largely direct-marketing business, to October 2014. The company’s products include copperinfused compression sleeves, gloves, socks, braces, shirts, shorts and tights priced from $24.50 to $69.50. If the $1.35 million payment is made this month, the remainder of the judgment would be suspended, U.S. District Court Judge Vincent L. Briccetti ruled. The full judgment will immediately be due, however, if the company misstated its assets and their value in financial statements to the FTC. The federal order prohibits Tommie Copper from continuing to claim that the copper in its products provides pain relief to consumers; treats or relieves chronic or severe pain or pain or inflammation from diseases including multiple » COPPER, page 6

Thomas Kallish, founder of Tommie Copper Inc., wears one of his company’s copper-infused knee sleeves at the Tommie Copper retail shop in Mount Kisco in this 2013 file photo.

South Broadway mixed-use project would displace senior residents BY COLLEEN WILSON cwilson@westfairinc.com

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epresentatives of the Esplanade Luxury Senior Residences apartment complex in downtown White Plains have presented the city Common Council a proposal to

gut and remodel the aged structure for conversion to a mixeduse building with 212 rental units. The project would displace 120 residents there. The estimated $35 million project includes transitioning the independent senior living complex at 95 S. Broadway into apart-

ments not restricted to seniors with 9,000 square feet of medical office space and 6,750 square feet of restaurant space. At the Common Council’s Dec. 7 meeting, attorney David S. Steinmetz, of Zarin & Steinmetz in White Plains, presented the renovation plans and a requested text amendment to the city zoning code on behalf of the Esplanade of White Plains Venture Partnership, the group of investors behind the project. The partnership includes the Scharf family, which owns and operates the Esplanade. Architect John Sullivan, of Sullivan Architecture P.C., the firm

designing the new Esplanade residence, presented additional details about the layout of the project to council members. “We will gut this building internally to its skin,” he said. He added that the buildings are in “structurally terrific condition” but are not “in the best of condition as far as their environmental quality.” Updating the exterior of the building will make it more sustainable, Sullivan said, while removing parts of the interior will decrease the square footage by 3,000 square feet, to 251,000 square feet, allowing it to be retrofitted for new residential units.

The Common Council referred the developers’ requested zoning text change regarding minimum square footage for rental units in existing buildings to the city planning board, environmental officer and law department for their review. With the proposed renovations, senior residents, who receive meals and housekeeping service at the Esplanade, will be required to find new residences. For seniors who cannot find new housing before the project begins, the Esplanade is offering temporary space in its Lyon Place » WHITE PLAINS, page 6


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