Daniel Straus, the New York University School of Law trustee whose company, CareOne Management, came under fire for subpoenaing emails of two students who criticized CareOne’s labor practices, will step down from the school’s board as of May 22. In a one-sentence email Thursday, the school said: “We write to let you know that, by mutual agreement of Daniel Straus and the Law School, Mr. Straus will be leaving the Law School Board at the end of this academic year.” It was signed by NYU Law Dean Trevor Morrison and Anthony Welters, chair of the board of trustees.
Straus, an alumnus and former attorney with Paul, Weiss, Rifkind, Wharton & Garrison, had served on the executive committee since 1998. A spokeswoman for CareOne, Deborah Maxson, said the company will not withdraw the subpoenas. “Mr. Straus has been honored to serve as a trustee … and remains a strong supporter of the law school,” she said, adding that Straus had planned to step down.
Luke Herrine, a 2L, and Leo Gertner, a 1L, circulated a 150-signature petition calling for a meeting with Morrison to discuss the labor practices of CareOne and another Straus’ company, HealthBridge Management. Shortly afterward, Care One issued the subpoenas as part of its ongoing litigation with its employees’ labor union, SEIU 1199, in Care One Management v. United Healthcare Workers East, SEIU 1199, 12 Civ. 6371.
The school agreed to pay for the students’ legal counsel and retained alumnus John Cuti of Cuti Hecker Wang, who filed a motion to quash the subpoenas on April 25.
Reached shortly after the announcement, Herrine said “The conflict of interest was clear and it had to be resolved somehow, and this was the perfect way to do it.”
CareOne is represented by K&L Gates partner Rosemary Alito and of counsel George Barbatsuly, who are both in Newark.