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What Direct Sales Companies Must Prepare For

By News & Events

The legal landscape is shifting for direct sales companies—and the FTC is rewriting the rules.

In the latest column of Direct Selling News, Scheef & Stone Partner Brent Kugler breaks down three legal threats MLM businesses should prepare for in 2026.

One of the biggest changes is how the FTC is reviewing online enrollment processes. In recent cases, companies were cited for failing to clearly present contract terms, cancellation policies, and auto-renewal clauses before charging consumers. Brent explains that hyperlinking to policies or referencing terms elsewhere is no longer sufficient. Full documents must be presented and reviewed at the point of sign-up.

Brent also highlights the agency’s evolving approach to earnings claims. The FTC’s proposed Earnings Claim Rule and 2024 Staff Report requires companies to substantiate every income statement they share—and make that data publicly available. More than just publishing earnings averages, companies must include information on participant expenses, update IDS annually, and enforce compliance policies when misleading claims are made.

Finally, the FTC’s definition of a pyramid scheme is becoming increasingly subjective. Instead of focusing on actual behavior, the agency is evaluating what participants could earn based on how a compensation plan is structured. In FTC v. Neora, Brent notes, the FTC dismissed the company’s actual operations and focused instead on the theoretical rights participants had to receive payments—marking a major departure from prior legal standards.

This article offers practical guidance for companies navigating unclear waters—and Brent’s experience, both as former General Counsel and regulatory counsel, brings valuable clarity to an evolving space.

Read the full piece on here in DSN’s September/October issue.

Learn more Brent and his regulatory work here.

Scheef & Stone Celebrates Women Leaders at 2025 Women in Business Summit

By News & Events

Scheef & Stone is honored to sponsor Local Profile’s 2025 Women in Business Summit, a premier North Texas event uniting 500 of the region’s most influential women for a day of inspiration, insight, and meaningful networking.

The Summit, now in its 24th year, features keynote speaker Suzy Batiz, Founder of Poo~Pourri, and panels of trailblazing leaders sharing stories of innovation and impact.

As a sponsor, Scheef & Stone attorneys will attend and participate in the event on September 12, continuing the firm’s mission to support and empower women across industries. In August, attorneys Kelly Kleist, Robin Barnes, and Shirley Rose represented the firm at the VIP Pre-Party celebrating the kickoff of this highly anticipated gathering.

When: Friday, September 12 at 8:00 AM – 2:00 PM
Where: Hilton Granite Park Hotel

Learn more about the Summit: Women in Business 2025

Scheef & Stone Attorneys Earn Recognition in 2026 Editions of The Best Lawyers in America® and Best Lawyers: Ones to Watch®

By News & Events

Scheef & Stone is pleased to announce that 13 of our lawyers have been recognized for excellence in the newly released 32nd edition of The Best Lawyers in America® and sixth edition of Best Lawyers: Ones to Watch® in America. Selection to these publications is based entirely on an extensive, confidential peer-review survey in which leading attorneys evaluate the legal abilities of their colleagues. No attorney or firm pays a fee to be considered.

The Best Lawyers in America® (2026 Edition) includes:

Roger A. Crabb: Employment Law – Management

Kelly Crawford: Commercial Litigation

Michael L. Knapek: Commercial Litigation; Insurance Law; Litigation – Insurance

Matt Bracy: Commercial Litigation

Mitch Little: Arbitration; Litigation – Real Estate

Mark Nielsen: Trademark Law

John Scheef: Commercial Litigation; Construction Law; Litigation – Construction

Mark Simon: Employment Law – Management; Litigation – Labor & Employment

Bill E. Stone III: Business Organizations (including LLCs and Partnerships); Corporate Law; Mergers & Acquisitions Law

Michael C. Smith: Litigation – Intellectual Property; Litigation – Patent; Patent Law

Jane C. Taber: Corporate Law; Mergers & Acquisitions Law

Best Lawyers: Ones to Watch® in America (2026 Edition)

Steven Coffin: Commercial Litigation

Logan Miller: Commercial Litigation

 

The firm observes that this broad range of recognitions—spanning litigation, transactional, employment, and intellectual-property matters—reflects Scheef & Stone’s depth of talent and the confidence peers place in its attorneys’ work across the business-law spectrum.

About Best Lawyers

Since its first U.S. edition in 1983, Best Lawyers has become widely regarded as a definitive guide to legal excellence. For the 2026 research cycle, more than 23 million votes were analyzed for The Best Lawyers in America® and more than 4 million for Best Lawyers: Ones to Watch®. Learn more at bestlawyers.com.

Scheef & Stone congratulates all of this year’s honorees and remains committed to delivering the high-caliber counsel that earned these peer-driven recognitions.

Scheef & Stone’s Shirley Rose Appointed to State Bar International Human Rights Committee

By News & Events

Scheef & Stone congratulates Shirley B. Rose on her appointment to the International Human Rights Committee (IHRC) of the State Bar of Texas International Law Section for the 2025–2026 bar year.

Shirley brings a truly global perspective to the committee’s work. Admitted as the youngest barrister in South Africa’s history, she has more than two decades of courtroom experience, including service as an acting judge of the High Court of South Africa. Her advocacy résumé spans complex corporate, construction, insolvency, banking, and securities-fraud disputes in multiple jurisdictions, where she has helped recover billions of dollars for institutional investors and other clients. The Bar Council’s early award of the prestigious “Red Bag” and its selection of Shirley to launch new High Court chambers underscore the esteem in which her peers hold her.

Beyond high-stakes litigation, Shirley frequently advises C-suite executives on cross-border transactions and compliance, with recent mandates involving Fortune 500 joint ventures and renewable-energy projects on three continents. She also co-founded the South African Bar’s Human Rights Committee, reflecting a longstanding commitment to social-justice initiatives.

The IHRC—established in 2015 as the first committee of its kind among U.S. state bars—develops guidance and educational programming on the human-rights implications of international business. Shirley’s blend of trial acumen and policy insight will help the committee mark its tenth-anniversary year with new programming for Texas lawyers.

Scheef & Stone looks forward to supporting Shirley’s IHRC initiatives and to sharing forthcoming resources with clients navigating the intersection of international commerce and human-rights compliance.

Learn more on the International Human Rights Committee’s website.

Scheef & Stone Sponsors 2025 Women in Business Summit and Joins VIP Pre-Event

By News & Events

Scheef & Stone is proud to support Local Profile’s 2025 Women in Business Summit, a signature event celebrating women leaders, bold ideas, and transformative conversations across industries.

As part of this sponsorship, several Scheef & Stone attorneys will attend the exclusive VIP Pre-Party on August 11 at Hall Park Hotel in Frisco. This invite-only gathering marks the official kickoff for the Summit and brings together sponsors, community leaders, and influential women for a dynamic evening of connection and collaboration.

Attorneys Kelly Kleist, Robin Barnes, and Shirley Rose will represent the firm at the VIP event as part of Scheef & Stone’s ongoing commitment to supporting women in business and leadership roles.

The 2025 Women in Business Summit, presented by Bank of America, will follow on September 12 with a full day of keynote speakers, panels, and networking opportunities.

When: Monday, August 11 at 4:00 – 6:00 PM

Where: Hall Park Hotel – Frisco, TX

Learn more about the Summit: Women in Business 2025

Kelly Crawford Featured in National Law Review & DailyDAC Article on Federal Equity Receiverships

By News & Events

Scheef & Stone is pleased to recognize Partner Kelly Crawford for his contributions to a recently published article in DailyDAC and the National Law Review, following his participation in a panel series on federal equity receiverships.

Over the past three months, Kelly served as a panelist in three webinars addressing the legal and operational nuances of federal receivership cases — particularly those involving allegations of fraud or regulatory action. These panels were organized in part by Financial Poise, a leading resource in business law education. The resulting articles, now live on two major platforms, outlines the core provisions of a receivership order, the role of the appointed receiver, and the importance of asset protection during court-supervised proceedings.

With deep experience in handling receiverships and enforcement actions, Scheef & Stone continues to be a trusted advisor in matters involving complex financial disputes and regulatory oversight.

Read the full article:
DailyDAC: https://www.dailydac.com/the-nuts-and-bolts-of-a-federal-equity-receivership-understanding-the-order-appointing-the-receiver/
National Law Review: https://natlawreview.com/article/nuts-and-bolts-federal-equity-receivership-understanding-order-appointing-receiver

Scheef & Stone Partner Mitch Little Recognized as Outstanding Freshman Legislator by Texas House GOP Caucus

By News & Events

Scheef & Stone is proud to share that firm partner and State Representative Mitch Little (R–Lewisville) has been named Outstanding Freshman Legislator by the Texas House Republican Caucus for his work during the 88th Legislative Session.

This distinction recognizes Rep. Little’s leadership on key legislation, particularly House Bill 4623, which addresses a growing crisis of educator misconduct in Texas public schools. The bill removes sovereign immunity protections for school districts in civil cases involving sexual abuse by school employees—giving survivors and their families long-overdue access to the courts.

HB 4623 establishes joint and several liability between an individual school employee and the district in cases of proven negligence, introducing a new legal pathway for victims to pursue justice. While the initial bill proposed strict liability, the final version adopted a negligence standard and included a $500,000 cap on actual damages—bringing it in line with existing civil protections under the Texas Tort Claims Act.

Rep. Little introduced the bill in response to alarming data from the state’s educator misconduct reporting portal. Thousands of allegations were reported but never investigated, and many more remained unresolved. Throughout the legislative process, he emphasized the need for courts to play a greater role in addressing institutional failures and ensuring that Texas students are better protected.

The bill passed with broad bipartisan support, receiving 127 votes in favor and just 6 opposed, and has since been cited as a model for similar reforms in other states.

This legislative milestone underscores Mitch Little’s commitment to justice, accountability, and public service. His approach—grounded in real-world legal experience and a willingness to lead on difficult issues—reflects the values that Scheef & Stone is proud to champion.

In addition to his legislative role, Rep. Little practices law at Scheef & Stone, where he represents clients in complex litigation and business disputes. He serves House District 65, representing part of Denton County, and maintains an office at the Texas Capitol in Austin.

Learn more about HB 4623 and Rep. Little’s legislative work: Texas To Remove School Immunity In Child Sex Abuse Lawsuits

Scheef & Stone Recognized in 2025 DBA 100 Club for Firmwide Membership

By News & Events

Scheef & Stone has once again been recognized as a proud member of the Dallas Bar Association’s 2025 DBA 100 Club—a distinction awarded to law firms in which 100% of full-time Dallas attorneys are active members of the DBA.

This recognition honors firms that demonstrate a shared commitment to legal excellence, continuing education, and local community engagement. As one of Dallas’s leading law firms, Scheef & Stone believes active participation in the local bar is not just a tradition—it’s a responsibility.

From supporting the DBA’s CLE offerings and leadership initiatives to mentoring the next generation of legal professionals, our attorneys consistently contribute time and talent to strengthen the legal community in North Texas.

Scheef & Stone will be recognized in the June, July, and August issues of Headnotes and at the DBA’s Annual Meeting in November 2025.

To learn more about the DBA 100 Club and view the full list of this year’s recognized firms, visit Dallas Bar Association.

Scheef & Stone Spotlight Series: Where Talent Meets Purpose – Get to Know the Attorneys Who Define Solid Counsel – Mitch Little. Trial Lawyer. Legislator. Leader.

By News & Events

At Scheef & Stone, we are proud to spotlight attorneys who not only deliver exceptional legal work but also serve their communities with integrity and leadership.

This month, we recognize Mitch Little, a seasoned trial attorney known for navigating high-stakes, high-profile litigation with precision and confidence. Mitch represents businesses and individuals in complex disputes where outcomes matter—and he delivers.

Beyond the courtroom, Mitch brings that same commitment to public service as a member of the Texas House of Representatives. He currently serves on the House Committees for Criminal Jurisprudence, Transportation, and the Subcommittee on New Offenses and Changed Penalties, applying his legal knowledge to shape meaningful legislative change.

“Mitch embodies what it means to be a servant leader,” said fellow partner and Executive Committee Member Matt Bracy. “Whether he’s in the courtroom or at the Capitol, he shows up with integrity, grit, and a deep commitment to his clients and his community.”

Stay tuned each month as we continue highlighting the attorneys who make Scheef & Stone a standout firm across Texas.

Learn more about Mitch Little