JUDGE RULES JLM COUTURE RETAINS ACCESS TO @MISSHAYLEYPAIGE INSTAGRAM ACCOUNT

Rhea-AI Summary

A federal court has ruled in favor of JLM Couture, allowing the company to retain access to its vital social media accounts, including a key Instagram account with 1.1 million followers. The court affirmed that Ms. Gutman breached her contract by using the account to promote third-party goods instead of the Hayley Paige brands. The ruling reinstates guidelines for Ms. Gutman, restricting her to only promoting the Hayley Paige brands and prohibiting any unauthorized commercial use of the accounts. JLM Couture plans to modify the injunction as necessary.

Positive

• JLM Couture retains control of key social media accounts critical for branding.
• Court ruling supports JLM's claims against Ms. Gutman, reinforcing contractual obligations.

Negative

• None.

NEW YORK, Feb. 15, 2022 /PRNewswire/ -- A federal court judge has ruled that JLM Couture will retain access to the key social media accounts used to promote its bridal brands. The accounts, including the 1.1 million-follower Instagram account (IG), are and have always been critical pieces of JLM's marketing and advertising program for its Hayley Paige brands, the judge ruled.

Both the District Court and the Court of Appeals for the Second Circuit held that the employment contract is clear and unambiguous and that there is a likelihood of success on JLM's claims against Ms. Gutman because she "breached her duty to assist with the advertising programs…and repudiated her obligation to post [JLM's] content on the Instagram account, and 'used the Instagram account to promote third party goods and build a commercial platform she intended to use for herself as an influencer."

In January, Ms. Gutman posted on her social media account that the appeals court ordered JLM to hand over control of the IG account to her. With Judge Swain's latest ruling, Ms. Gutman's posting have been shown to be false.

Judge Swain has reinstated and revised the Preliminary Injunction (PI) to allow Ms. Gutman to post only content that solely promotes the Hayley Paige brands on the @MissHayleyPaige IG and Pinterest accounts. The court's latest order continues to bar Ms. Gutman from locking JLM out, promoting herself as an influencer, and/or using the account(s) for any commercial purposes other than promoting the Hayley Paige brands, changing the name of the IG or Pinterest accounts, deleting, or altering any content, communicating with followers or other third parties in connection with any non-JLM commercial venture, or gaining exclusive control over the accounts.

Judge Swain, in her Order, continues to recognize that "content included on the social media platforms…must meet certain criteria, including that it must be 'consistent with JLM's high standards of quality and decorum' and 'promote the HP brands.'"

A spokesperson for the company said, "The Court's ruling is affirmation that up until Ms. Gutman's breach of her contract, the social media accounts have solely been used to advertise the Hayley Paige brands.  JLM has always and continues to welcome the opportunity to collaborate with Ms. Gutman in promoting the Hayley Paige brands in a way that is in line with the brand image."

JLM expects there will be further modifications to the PI at the appropriate time.

ABOUT JLM COUTURE, INC.
JLM Couture, Inc. (OTC: JLMC) is a multi-label bridal house engaged in the design, manufacture, and distribution of bridal gowns and bridesmaids dresses. The company's bridal gown collections are Hayley Paige, Blush by Hayley Paige, Lazaro, Tara Keely, Ti Adora, and Allison Webb. The bridesmaid collection is Hayley Paige Occasions. JLM Boutique, the company's flagship bridal store, is located in West Hollywood, California.

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SOURCE JLM Couture

FAQ

What was the recent court ruling regarding JLM Couture and its social media accounts?

A federal court ruled that JLM Couture retains access to its key social media accounts, including an Instagram account with 1.1 million followers, essential for marketing its brands.

What did the court say about Ms. Gutman's actions regarding the JLM Couture Instagram account?

The court found that Ms. Gutman breached her contract by using the Instagram account for personal promotion instead of for JLM's Hayley Paige brands.

How does the court's ruling affect JLM Couture's marketing strategy?

The ruling allows JLM Couture to maintain its branding strategy by ensuring that social media content aligns with its high standards and directly promotes the Hayley Paige brands.

What are the implications of the court ruling for the future of JLM Couture's social media use?

JLM Couture expects further modifications to the preliminary injunction, which may adjust how Ms. Gutman can use the social media accounts moving forward.

What is the stock symbol for JLM Couture?

The stock symbol for JLM Couture is JLMC.