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IRVINE, Calif., March 15, 2021 /PRNewswire/ Cal-SARA has entered into a defamation lawsuit brought by Veronica Lake, CEO of Diamond PEO against one of its members, Alex Cervantes and a second defendant, Power PEO. Cal-SARA will be representing Cervantes on his defense and counterclaims.
Diamond PEO filed the defamation suit on February 26, 2021 alleging that Cervantes and the other defendant made false claims about the legality of its operations and business practices, specifically as it applies to valid workers compensation insurance. Diamond is asking the court to find damages in excess of $100,000 in damages.
Cervantes answered and filed counterclaims against Diamond and Veronica Lake alleging the plaintiff unlawfully gained competitive advantages over its competitors by circumventing the protections to employers and employees provided under California law.