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Roxy is a creative problem solver who is dedicated to learning her clients' business so she can help anticipate their needs and navigate matters before and through litigation.

As a partner in Dorsey’s Commercial Litigation Group, Roxy represents clients involved in complex business litigation matters in a wide range of areas, including general contract disputes, business disputes, employment disputes, internal investigations, real estate disputes, products liability, and antitrust disputes. In addition, Roxy has experience representing financial institutions in arbitrations and other regulatory matters before FINRA. Roxy prides herself in providing her clients with practical advice to their legal and business issues.

In addition to her litigation work, Roxy represents property owners in state tax assessment appeals. She seeks to minimize clients' property tax exposure on the property they own or lease to the greatest extent possible under state statutes and local ordinances. She has experience working with county tax assessors and appearing at the state tax board level, where she has assisted clients in achieving significant tax reductions and tax refunds.

Roxy is a dedicated advocate and devotes significant time on pro bono work addressing racial inequality and civil liberties. Most recently, Roxy worked with The Jim Crow Juries Project, a program through the Promise of Justice Initiative that seeks to help Louisianans heal from the injuries caused by Jim Crow juries.

Before joining Dorsey, Roxy was a law clerk to the Honorable Justice David L. Lillehaug on the Minnesota Supreme Court.

Education

  • University of St. Thomas School of Law (J.D., 2015)
    • cum laude, President’s Scholarship Recipient, Latino/a Law Student Association – President, American Association of Justice Mock Trial Competitor
  • University of Texas at Austin (B.S., Microbiology, 2006)

Bar Admissions

  • Minnesota

Court Admissions

  • U.S. District Court for the District of Minnesota

Professional Affiliations

  • Minnesota Commission on Judicial Selection, Attorney Member Appointed by the Governor of Minnesota (2023)
  • Federal Bar Association
    • Member
    • Pro Se Project Volunteer
    • Latino Legal Experience Part Two, Panelist (2017)
  • Minnesota State Bar Association Member
  • Hennepin County Bar Association
    • Member
    • 1L Clerkship Selection Committee Member (2017)
  • Minnesota Hispanic Bar Association
    • Vice-President (2020-2021)
    • Judicial Endorsements Committee Member
    • Mentor
    • Judicial Clerkship Panel, Panelist (2019)
  • University of St. Thomas School of Law
    • JD Compass Strategist
    • Judicial Clerkship Panel, Panelist (2019)

Clerkships

  • Minnesota Supreme Court, Honorable David L. Lillehaug, 2015-2016

Accolades

  • Consistently providing pro bono legal assistance to those in need through Dorsey’s Pro Bono program
  • MSBA, North Star Lawyer, 2020, 2023
  • Best Lawyers® Ones to Watch in America, Commercial Litigation, Minneapolis, 2021-2026
  • Minnesota Super Lawyers®, "Rising Stars," Business Litigation, 2024, 2025
  • Contributed more than 50 Diversity hours, 2020-2023
  • Minnesota Monthly, “Top Lawyers in Minnesota,” Commercial Law, 2024
  • Minnesota Lawyer's Up & Coming Attorneys, 2022
  • Pathfinder Program, Leadership Council on Legal Diversity (LCLD), 2022

Insights

Client Alert

EPA Bans Chrysotile Asbestos in US

March 22, 2024

On Monday, March 18, 2024, the Environmental Protection Agency (EPA) announced a ban on the use of chrysotile asbestos in the United States, including in products imported into the U.S. This ban is an expansion of the Frank Lautenberg Chemical Safety Act of 2016 (“Chemical Safety Act”), which attempted to address different state rules governing the use of various chemicals in U.S. manufacturing dating back to 1976. While production of most consumer-facing products containing chrysotile asbestos had already been discontinued in the U.S., the use of this material has continued in the chemical and industrial sectors. This ban comes within the context of President Biden’s Cancer Moonshot goals seeking to prevent more than 4 million cancer deaths by 2047. The EPA took steps to ban the chrysotile asbestos material as a public health matter following its identification of shortcomings in the Toxic Substances Control Act of 1976. Once this new rule is published, the ban is expected to take effect over the next several years as part of a “reasonable transition period.” The use of asbestos in consumer products has been banned in more than 50 countries, and its use in the U.S. manufacturing has declined for decades. Currently, the only form of asbestos knowingly imported, processed, or distributed in the U.S. is chrysotile asbestos. Chrysotile asbestos is primarily imported into the U.S. from Russia and Brazil for use in the chlor-alkali industry which produces chemicals such as chlorine bleach, caustic soda, lye, and other products used in water treatment and nuclear waste storage. The Chemical Safety Act required the EPA to evaluate chemicals used in the U.S. and put into place protections against materials considered to present an “unreasonable risk.” This legislation shifted the agency’s review process to a health-based safety standard, rather than the previous cost-benefit safety standard. Upon review, the EPA determines whether additional regulatory controls are needed for manufacturing, distributing, processing, using or disposing of chemicals in order to protect public health. This review process led to the EPA’s decision to ban the use of chrysotile asbestos in the U.S. as part of its regulatory authority under the Chemical Safety Act. As chrysotile asbestos is a material used in wastewater treatment, the National Association of Clean Water Agencies has indicated concern that this new ban may cause shortages and price increases for disinfection chemicals used in water treatment. The EPA noted that the chrysotile asbestos gaskets used to ensure safe nuclear material disposal at the Savannah River Site in South Carolina may continue as scheduled until 2037. The EPA also continues to evaluate the use of asbestos called “legacy use” in order to determine the potential public health risks associated with legacy use in schools and industrial sites. Dorsey’s attorneys have extraordinary expertise in the area of Toxic Torts. From representing global manufacturers of cleaning and sanitizing products to vehicle manufacturers and other material and equipment manufacturers, we defend clients vigorously, bringing our extensive knowledge, skill, and resources to each and every stage of the litigation. Toxic Torts is a unique practice area where relationships are just as important as understanding the rhythm of litigating an asbestos case. We are dynamic litigators and risk managers who have a reputation in the asbestos bar for being smart, capable, and dexterous at all stages of litigation. We not only understand the science, but also the players and the jurisdictional risks inherent in toxic torts litigation. We prioritize development of a good corporate story; ensure consistency in discovery nationally; regularly challenge subject matter and personal jurisdiction; leverage package settlement opportunities; and continuously develop our knowledge to best represent our clients.

Client Alert

Minnesota Legislature Amends Commercial Eviction Law: What Landlords and Tenants Need to Know

July 25, 2023

In May 2023, Minnesota passed a historic $1 billion-dollar investment in housing policy, enacting comprehensive changes to Minnesota Statutes Chapter 504B governing commercial and residential landlord-tenant law. Most provisions take effect on January 1, 2024, and will apply to leases entered into or renewed on or after January 1, 2024. This update addresses changes specific to commercial real estate. For those involved in residential leasing, we advise further review of the statutory amendments because many residential landlord-tenant provisions have changed, largely strengthening the rights of tenants. Below, we outline how the new amendments relevant to commercial leasing incorporate comprehensive changes to court eviction procedures and timelines. Eviction Timelines The new legislation overhauls Minn. Stat. § 504B.335, which provides the timeline for trial to proceed following the defendant’s answer. In the prior version of § 504B.335, the court was to “hear and decide the action” according to § 504B.341, which allowed a court to continue trial in an eviction action “for no more than six days unless all parties consent to longer” and, in other cases, “for no more than three months[.]”  However, pursuant to the newly passed legislation, § 504B.341 is repealed effective January 1, 2024, and § 504B.335 will be significantly different. Courts will have no specific deadline for trial and must select a date that allows for a fair, thorough, and timely adjudication of the merits of the case, including the complexity of the matter, the need for the parties to obtain discovery, the need for the parties to ensure the presence of witnesses, the opportunity for the defendant to seek legal counsel and raise affirmative defenses, and any extenuating factors[.] Importantly, this change means that courts are no longer up against a firm deadline to begin trial, assuming that the trial schedule is based on factors delineated in the new § 504B.335 language.  Under revisions to section (d) of § 504B.335, a court is also required to give priority to scheduling trials for evictions of residential tenants that include allegations that the defendant is “endangering the safety of other residents, or intentionally and seriously damages the property of the landlord or a tenant.” Prior to these revisions, the statute was unclear whether an eviction had to be of a residential tenant for scheduling priority; this priority is now clearly unavailable for commercial evictions. Bond Requirements Additionally, a new section (e) is being added to § 504B.335, which limits the circumstances under which the court may require a tenant to post a bond or security. Specifically, the new provision prohibits imposition of a bond or other security unless “the final disposition of the action may be delayed for more than ten days.” The court bases such payment “on the totality of the circumstances” and may not require payment for “any amounts allegedly owed prior to the date of filing of the action,” and the amount “may not exceed the . . . rent that accrues during the pendency of the action.” Eviction Complaint and Summons The legislature also amended § 504B.321, which governs procedure for filing and serving an eviction complaint. Newly enacted subdivision 3 outlines required content of an eviction complaint, including: An attachment of the current lease or most recent lease, and any relevant addenda; If the complaint alleges nonpayment of rent, an attachment providing a “detailed, itemized accounting or statement” of the outstanding charges; If the complaint alleges breach of the lease agreement, the complaint must identify the relevant lease clause, nature and date of breaching conduct, and the clause providing a right to evict based on such default. Newly enacted subdivision 4 provides a detailed list of what the summons must include, at a minimum: The full name of the person against whom the complaint is brought; The date, time, and location of the hearing; Information about the methods for participating in the court appearance; The following statement: “You have the right to seek legal help or request a reasonable accommodation from the court for your hearing. Contact the court as soon as possible if you need an accommodation. If you can’t afford a lawyer, free legal help may be available. Contact Legal Aid or visit www.LawHelpMN.org to know your rights and find your local Legal Aid office”; The following statement: “To apply for financial help, contact your local county or Tribal social services office, apply online at MNBenefits.mn.gov, or call the United Way toll-free information line by dialing 2-1-1 or 800-543-7709”; and Notification that a copy of the complaint is attached and has been filed with the court. See Laws of Minnesota 2023, ch. 52, sec. 105. Although the court is responsible for issuing a summons after the filing of an eviction complaint, it is important to confirm compliance with all requirements of filing and service to maintain or defend against the cause of action. The language in subdivision 4(4)-(5) is expansive and is not explicitly limited to residential tenants, so commercial real estate litigators are obligated to comply with these requirements as well. Defective Filing or Service Under newly enacted § 504B.321, subdivision 5, courts must dismiss and expunge the record of any action if the landlord fails to comply with the requirements of filing and serving an eviction complaint. Mandated dismissal and expungement is a significant advantage for tenants, and increases the importance for both parties of noting any deficiencies in the complaint or service of process. Service of the Summons and Complaint Although not a new requirement, the legislature clarified the language of § 504B.331 to emphasize that the summons and complaint must be served according to its instructions. More importantly, this provision adds a new option to fulfill the affidavit requirement outlined in § 504B.331(d)(1). The signed affidavit, filed by the plaintiff or the plaintiff’s attorney, must state that: The defendant cannot be found, or that the plaintiff or the plaintiff’s attorney believes that the defendant is not in the state; A copy of the summons has been mailed to the defendant at the defendant’s last known address if any is known to the plaintiff, OR The plaintiff or plaintiff’s attorney has communicated to the defendant that an eviction hearing has been scheduled, including the date, time, and place of the hearing specified in the summons, by at least one form of written communication the plaintiff regularly uses to communicate with the defendant that have a date and time stamp. See Laws of Minnesota 2023, ch. 52, sec. 106. Paragraph (iii) provides landlords with a new, more flexible option to provide formal notice to defendant tenants through their typical channels of communication. Overall, eviction proceedings for commercial leases are experiencing fewer changes than those for residential leases. However, a good understanding of these changes and their effects prior to January 1, 2024 will be important to ensure that eviction proceedings run smoothly under the new amendments. Dorsey’s real estate litigation team represents landlords and tenants of all sizes in commercial leasing disputes in Minnesota and throughout the United States.  We are here to answer any questions pertaining to the amendments to the Minnesota statutes governing landlord-tenant relations in both commercial and residential contexts. Please contact one of our attorneys if your business is or may become party to an eviction or other legal action.

Firm Highlights

Event/Resource

Corporate Counsel Symposium 2026 Materials Hub

Materials Symposium Agenda Sessions 8:30 am - 9:30 am CT Session A: The Corporate Compass: Finding True North When Ethical Duties Conflict Philip Kaplan, Senior Legal Counsel, Howden Re Lucia Suljic, Vice President, Corporate Legal, Canon USA Nicole Stanton, Partner & Deputy General Counsel, Dorsey & Whitney LLP This panel addresses ethical obligations of in-house counsel, including balancing obligations and duties that may conflict with each other. How should a responsible in-house lawyer deal with those challenging situations? Rather than stick to an academic discussion, this panel will revolve around a series of practical scenarios that are designed to be realistic and timely, including situations where counsel is asked to represent both the company and an individual, how and when to disclose uncomfortable facts and inconvenient documents, issues involving changing firms and companies, and multijurisdictional practice. The panel will feature discussion from two experienced in-house lawyers and Dorsey’s Deputy General Counsel. Session B: Managing Rapid Regulatory Change in International Trade and Cross-Border Investment Nathan Brower, Executive Vice President, General Counsel, Nature’s Sunshine Greg Ogunsanya, Senior Vice President, General Counsel and Corporate Secretary, H.B. Fuller Kathryn Wood, Senior Vice President & General Counsel, DecoPac, Inc. Dave Townsend and Lawrence Ward, Dorsey & Whitney LLP This program is designed for attorneys advising on cross-border transactions, international trade, regulatory compliance, and corporate governance matters. Panelists will examine recent developments in U.S. trade and investment law and policy, as well as their impact on international collaborations, corporate compliance, and mergers and acquisitions. The discussion will explore how general counsel and in-house legal teams assess and manage evolving trade-related risks within their organizations. Particular focus will be given to developments during the first two years of the second Trump Administration, including changes in tariff policy, tariff refunds, export controls, economic sanctions, and national security reviews of foreign investment. Through a discussion of regulatory trends and practical case studies, attendees will gain a deeper understanding of the legal risks and compliance obligations associated with cross-border business activities, and hear about practical strategies for advising clients and managing compliance obligations in a rapidly changing trade and investment environment. 9:45 am - 10:45 am CT Session A: The Elon Musk Cases: What Tesla and Twitter Can Teach Your Board of Directors Loren Unterseher, Managing Partner, Oxbow Industries, LLC Shulamite White, Chief Legal Officer and Head of People, Motive Technologies Kirsten Schubert, Tom Swigert, and Jonathan Van Horn, Dorsey & Whitney LLP Recent cases involving Elon Musk and his businesses have had significant impact on principles governing board of directors’ fiduciary duties and corporate processes. This panel will examine recent litigation involving Elon Musk, Tesla, and Twitter, and its effects on the law governing the duties of directors and executives, including the executive compensation and director compensation processes, conflicts that may arise when a single executive has control over multiple businesses, and the ramifications of tweets or other public statements by an executive. Session B: All Eyes on DEI: Managing Diversity Efforts Amid Regulatory Scrutiny and Potential Litigation Maggie Dalton, Senior Commercial Attorney, Cargill; Board Co-Chair, Twin Cities Diversity in Practice Laura A. Vannelli, Legal Counsel, Mayo Clinic Susan Lorenc and Jack Sullivan, Dorsey & Whitney LLP The legal and regulatory landscape surrounding diversity, equity, and inclusion (DEI) initiatives has changed dramatically over the past two years. Law firms and legal departments are continuing to grapple with how to recruit, retain, and develop talent from a wide range of personal backgrounds, in a world where previously accepted recruiting and employment practices are facing increased scrutiny and litigation. This program will provide a practical overview of the current legal regime, including recent federal enforcement actions and litigation trends associated with DEI initiatives. Panelists will discuss practical ways in which organizations can pursue and retain legal talent and increase inclusion while minimizing legal, business, and reputational risk. 11:00 am - 12:00 pm CT Session A: Governance in an Age of Increasing Unpredictability James Chosy, Senior Executive Vice President and General Counsel, U.S. Bancorp Todd Hartman, Executive Vice President and Chief Legal and Risk Officer, Best Buy Co., Inc. Alan Rosselot, Associate General Counsel & Assistant Secretary, Delta Air Lines, Inc. Cam Hoang and Robert Rosenbaum, Dorsey & Whitney LLP More than ever, ensuring that boards are well-informed and forward-thinking is critical to a company’s success. Join our panel of corporate governance experts as they share their experiences advising boards through crisis and unpredictable events; capitalizing on, but also checking, disruptive technologies; and positioning the company to succeed in an environment of shifting government priorities. Session B: A Day in the Life of a Trademark, Copyright & Advertising Attorney: A Hypothetical Case Study Alexander Kim, Vice President and General Counsel, Binks Nate Whitaker, Chief Legal Officer and General Counsel, Crumbl Cathy Dahl and Tiffany Shimada, Dorsey & Whitney LLP What issues are companies facing daily while developing rights in intellectual property, protecting those rights, and staying in compliance with myriad potential issues related to advertising, social media, relationships with influencers, and environmental or governmental claims? This panel will feature two in-house counsel who are navigating these issues, utilizing a hypothetical case study, with the support of two Dorsey attorneys helping to develop a roadmap for meeting business objectives and minimizing the risk of claims. 12:00 pm - 1:15 pm CT Keynote Address Dr. Rebecca Heiss, Stress Physiologist Dr. Rebecca Heiss is a stress physiologist, author, and sought-after speaker who helps audiences transform fear and stress into fuel for greater performance and resilience. Her research has been recognized as “transformative” by the National Science Foundation, and she is the author of two books, Springboard and Instinct. Through her Fear(less) message, Rebecca inspires audiences with practical, science-based strategies to train our brains to work for us – not against us – and navigate change and uncertainty with greater confidence.

Insights

Observations on the SEC’s 2027 Examination Priorities

The SEC’s Division of Examinations (the “Division”) recently announced its examination priorities (“Exam Priorities”) for fiscal year 2027.1 Although many of the Division’s core areas of focus remain consistent with fiscal year 2026, the 2027 Exam Priorities include notable changes and refinements, which we discuss below, along with other key 2027 examination priorities. Dorsey Observations Renewed focus on economic conflicts of interest. After certain economic-incentive topics received less emphasis in the 2026 Exam Priorities2, the Division has again expressly identified economic conflicts as an examination focus. The 2027 Exam Priorities indicate that the Division will prioritize reviewing advisers’ fiduciary obligations relating to economic conflicts of interest raised by fee rebates, fee and expense calculations, cash management, quid pro quo arrangements, and deposits and withdrawals. Greater emphasis on private-fund practices. Building on the private-fund items in the 2026 Exam Priorities, the 2027 Exam Priorities indicate that the Division will assess private-fund disclosures and controls relating to investment allocations, leverage, affiliated service providers, and fees and expenses. The Division also identified investments in private companies through special purpose vehicles (“SPVs”) and loans provided by private funds and business development companies (“BDCs”) as products the Division will scrutinize. Advisers, particularly private-fund advisers, should evaluate whether their disclosures and compliance programs address these areas. Expanded focus on AI-related cybersecurity risks. While the 2026 Exam Priorities focused on advisers’ use of and representations regarding artificial intelligence (“AI”), the 2027 Exam Priorities specifically highlight AI-enabled cybersecurity threats, including AI-generated phishing and synthetic or “deepfake” voice and video used for social engineering. The shift signals that registrants should consider whether their cybersecurity policies and controls adequately address these evolving threats. New focus on proxy advisory firms. The 2027 Exam Priorities state that the Division will examine advisers that rely on proxy advisory firms, including how those advisers evaluate the firms’ recommendations, assess the bases for those recommendations, identify potential conflicts of interest, and determine whether that reliance satisfies applicable legal obligations. Advisers that rely on proxy advisory firms may wish to consider whether their compliance programs address these areas. Updated focus on Regulation S-P and Regulation S-ID. The 2026 Exam Priorities stated that the Division would engage firms during examinations regarding their progress in preparing incident response programs ahead of the compliance dates for the amendments to Regulation S-P and would examine compliance with the amended rule after those dates. The 2027 Exam Priorities indicate that examinations will focus on whether firms have developed, implemented, and maintained reasonably designed policies and procedures addressing administrative, technical, and physical safeguards to protect customer information and that, in accordance with the amended rule, staff will evaluate response program policies and procedures for unauthorized access to or use of customer information, including customer notification procedures and oversight of service providers. With respect to Regulation S-ID, the 2027 Exam Priorities indicate that examiners will assess whether firms are updating their Identity Theft Prevention Program to address emerging risks, such as those related to AI and stolen credentials. Advisers may wish to consider whether their compliance programs address these areas, as applicable. Summary of Other 2027 Examination Priorities Beyond the developments discussed above, many of the Division’s core examination priorities remain consistent with fiscal year 2026. These include investment adviser fiduciary obligations and compliance programs, examinations of never-examined and recently registered advisers, and cybersecurity and operational resiliency. The Exam Priorities are not exhaustive, and examinations will vary based on each registrant’s business, activities and risks. Advisers should consider the 2027 Exam Priorities in reviewing their compliance programs and preparing for potential examinations, including by: Reviewing risk disclosures and controls. The Division states that, when examining advisers to private funds, it will assess whether investment-related risk disclosures are consistent with fiduciary standards and whether compliance policies, procedures, and controls are designed to address both fund-level and investment-level risks. Reviewing disclosures on allocations, leverage, and affiliated service providers. The 2027 Exam Priorities identify disclosures related to certain investments and allocations, the use of debt and fund-level lines of credit, and the use of affiliated service providers as examples. Confirming the accuracy of fee and expense calculations. The Division states that it will assess the accuracy of fee and expense calculations at both the fund and investment levels, and it identifies fee rebates, cash management, quid pro quo arrangements, deposits, and withdrawals as areas in which economic conflicts of interest may affect the impartiality of advice. Reviewing recommendations of illiquid or hard-to-trade products. The Division states that it will prioritize advisers that recommend products that are difficult to trade, have unusual features, or are illiquid, including loans provided by private funds or BDCs and investments in private companies through SPVs. Confirming that the compliance program is implemented and reviewed. The Division states that it will review compliance program components such as marketing, valuation, and custody, as appropriate, and will typically analyze the annual compliance review. It will also focus on compliance practices when advisers have started advising new asset classes or clients or grown through mergers or acquisitions. 1 SEC Division of Examinations 2027 Examination Priorities. 2 See Dorsey’s Client Alert on the SEC’s fiscal year 2026 exam priorities.

News

Dorsey & Whitney Advises Beijing Xunzhong on Two Consecutive H Share Placings Raising HK$418.5 Million

International law firm Dorsey & Whitney LLP acted as Hong Kong legal advisors to Beijing Xunzhong Communication Technology Co., Ltd. (“Xunzhong”) as to Hong Kong law in connection with two consecutive placings of new H shares under general mandate (the “First Placing” and the “Second Placing”, respectively, and together, the “Placings”). Xunzhong’s H shares are listed on the Main Board of the Hong Kong Stock Exchange (Stock Code: 2597). Winbull Securities International (Hong Kong) Limited acted as sole overall coordinator and placing agent on both Placings. The First Placing of 11,190,000 new H shares at HK$28.20 each was completed on September 17, 2026, followed by the Second Placing of 3,550,000 new H shares at HK$29.00 each on October 30, 2026. The Placings raised approximately HK$315.56 million and HK$102.95 million in gross proceeds, respectively, or approximately HK$418.51 million in aggregate (approximately HK$415.96 million in aggregate net proceeds). Both Placings were conducted under the same general mandate granted by shareholders at Xunzhong’s 2025 annual general meeting, and each was completed within one week of the signing of its placing agreement. Completing placings in consecutive months is relatively uncommon in the Hong Kong market, and doing so called on the technical depth of Dorsey’s Hong Kong Capital Markets team. Working closely with Xunzhong to understand its business needs and prepare the transaction documents, the team addressed in quick succession the remaining capacity under the general mandate, disclosure of the use of proceeds and the maintenance of Xunzhong’s public float, enabling both Placings to be completed seamlessly. “We are pleased to have advised Xunzhong on both Placings,” said Rachel Han, Partner and Co-Head of Dorsey’s Asia Capital Markets practice. “We appreciate the trust placed in our team and the close collaboration among all parties involved. We look forward to supporting Xunzhong as it continues to execute its growth strategy and pursue future capital markets opportunities.” Xunzhong is principally engaged in cloud-based communications services and enterprise digitalization services in the PRC. As disclosed in its announcements, the net proceeds of the First Placing are allocated to developing Xunzhong’s new computing power operation services business, while those of the Second Placing will be used to integrate model-as-a-service (MaaS) and AI agent capabilities into its existing cloud communications platform-as-a-service (PaaS) platform and software-as-a-service (SaaS) products. Approximately 55% of the net proceeds of the Second Placing will be used for computing power equipment upgrades for the MaaS system, approximately 35% for MaaS, PaaS and SaaS platform upgrades, and approximately 10% for working capital and general corporate purposes. With a single MaaS platform and shared computing power supporting its PaaS and SaaS offerings, Xunzhong intends for its MaaS, PaaS and SaaS capabilities to complement and reinforce one another, and to address customer needs from multiple angles, from embedding AI in customer communications and business workflows to maintaining stable performance at scale and keeping customer data within controlled environments. Partner and Co-Head of Dorsey’s Asia Capital Markets practice Rachel Han and Of Counsel in the Capital Markets and Corporate Compliance group Carlton Ng, along with Associate Kristy Ting, led the Dorsey Hong Kong Capital Markets & Corporate Compliance group in advising Xunzhong on both Placings.

Insights

Minnesota Consumer-Fraud Enforcement: Disclaimers Won’t Cure Deception, and Penalties Can Add Up

Misleading advertising claims can lead to costly consequences. In State of Minnesota ex rel. Ellison v. Wall & Associates, Inc., No. A25-2064, 2026 WL 3118291 (Minn. App. Oct. 19, 2026), the Minnesota Court of Appeals recently affirmed a bench trial verdict against a tax-relief company and two executives for violations of the Minnesota Consumer Fraud Act (“MCFA”) and the Minnesota Deceptive Trade Practices Act (“MDTPA”). The decision, which affirmed a substantial restitution and civil penalty judgment, underscores the broad power of the Minnesota Attorney General to act against deceptive sales practices. The decision also offers practical lessons for businesses seeking to reduce liability risks in consumer-facing communications. Background Wall & Associates (“W&A”), a Virginia-based tax-relief company, marketed assistance to taxpayers seeking relief from outstanding federal and state tax liabilities, often with offers in compromise—agreements to settle tax liabilities for less than the amount owed. In its extensive advertising campaigns, W&A represented that its average client received a 90% reduction in their tax debt, that it was a local company with Minnesota offices, that it provided legal services, and that it would “Solve ALL Tax Problems.” In reality, W&A’s promises bore little resemblance to what many clients received. Most of W&A’s clients saw just a 9.5% reduction in federal tax debt and 1.2% in state tax debt. W&A had no permanent Minnesota offices. And W&A provided neither legal representation nor assistance with filing tax returns—those services required referrals to separate firms for an additional fee. All the while, W&A clients paid upfront and recurring fees, including during periods when W&A did no work on their cases. Minnesota Attorney General Keith Ellison sued W&A, its founder and owner Ernest Kenneth Wall, and its president and CEO Patrick Mark Yates, alleging violations of, among other laws, the MCFA and the MDTPA. Following a 12-day bench trial, the district court determined that W&A violated the MCFA and MDTPA through its false and embellished advertising. The district court also held Wall and Yates individually liable for those violations because they directed, participated in, and acquiesced in the violations. The district court ordered injunctive relief, $2.7 million in restitution (with Wall and Yates jointly and severally liable for $1.3 million), and civil penalties of $786,517 against W&A, $415,500 against Wall, and $207,750 against Yates. The district court also awarded over $2.5 million in attorneys’ fees and costs to the state. W&A, Wall, and Yates appealed to the Minnesota Court of Appeals, which affirmed the district court’s decision on October 19, 2026. Although W&A, Wall, and Yates challenged the judgment on numerous grounds, several highlights of the decision provide important takeaways for consumer-facing businesses. Individual Reliance Is Not Required for Statutory Liability W&A argued that Attorney General Ellison had to prove a causal nexus between each violation of the MCFA and MDTPA and the injury to a particular consumer to establish liability. In W&A’s view, this required proof that each injured consumer had personally relied on W&A’s false representation. The Court of Appeals rejected this argument based on the MCFA’s and MDTPA’s plain language, which requires no proof of actual deception or confusion by consumers. The Court of Appeals finally pointed to the Minnesota Supreme Court’s decision in State v. Minnesota School of Business, Inc., which held that when a defendant’s misrepresentations are directed at and affected “a broad group of consumers, proof of direct individual reliance is not required to establish a causal nexus between MCFA violations and the harm suffered by consumers.” 935 N.W.2d 124, 135 (Minn. 2019). The Court of Appeals affirmed, however, that a causal nexus is necessary to support an award of damages under the MCFA and MDTPA. In making that determination, district courts look to various factors, including whether the misrepresentations were “longstanding, pervasive, and widespread in communications directed to consumers,” whether the seller intended and understood that consumers would rely on the misrepresentations, and whether the information was of a kind on which consumers would typically rely. The Court of Appeals’ decision continues Minnesota School of Business’s broad interpretation of liability under the MCFA and the MDTPA. Coordinated marketing campaigns to a “broad group of consumers” may expose businesses to MCFA and MDTPA liability without customer-by-customer proof of injury. That said, a causal nexus remains an element of an MCFA and MDTPA claim, and businesses involved in litigation should build a clear record at trial and on appeal showing how each of the relevant factors bears on the causal-nexus inquiry. Contractual Disclaimers Are Not an Automatic Defense to a Misleading Pitch W&A next argued that disclaimers in its client contracts prevented consumers from claiming they had been misled by its advertising. Reiterating that individual reliance is not required under the MCFA and MDTPA, the Court of Appeals held that a contractual disclaimer does not necessarily defeat a claim based on a conflicting oral representation. And on the facts of this case, the Court of Appeals agreed with the district court that W&A’s contractual disclaimers were insufficient given the extensive misrepresentations by W&A and the unequal bargaining power between it and its customers. This holding confirms that contractual disclaimers are not a cure-all for misleading advertising or sales practices. Businesses should review the entire customer journey, including pre-contract representations, as those representations may survive a contractual disclaimer to the contrary. And if faced with litigation, businesses should build a strong record, both at trial and on appeal, showing why any disclaimer is effective in context. The State Has Broad Authority to Seek Restitution W&A also challenged Attorney General Ellison’s authority to seek restitution under the state’s parens patriae authority to protect residents’ collective interests, arguing that injury to only 228 Minnesotans did not affect a sufficiently substantial segment of the population. The Court of Appeals rejected a simple headcount approach, instead explaining that the state had a legitimate interest in protecting residents’ economic well-being as a whole. In any event, the Court of Appeals held that if restitution was not appropriate under the state’s parens patriae authority, then it would still be appropriate under the Attorney General’s enforcement powers under Minn. Stat. § 8.31. The decision reinforces that the broader and more sustained the deceptive advertising, the stronger the case for restitution to protect Minnesotans’ economic interests. Civil Penalties Accrue Per Violation, Not Per Defendant The Court of Appeals finally rejected W&A’s claim that the Attorney General’s enforcement powers under Minn. Stat. § 8.31 permit only civil penalties of up to $25,000 for each defendant. Rather, the Court of Appeals explained that penalties are limited to $25,000 per violation. Multiple violations can therefore produce substantially greater penalties. The Court of Appeals also rejected the argument that restitution made penalties unnecessary: repaying consumers does not eliminate the need to address gains from deceptive conduct and deter future violations. Final Takeaways Align every consumer-facing communication. Broad and extensive marketing campaigns can expose businesses to stronger enforcement standards under the MCFA and MDTPA, making it critical that consumer communications remain accurate and consistent from the first advertisement through the final sale. Plan for layered enforcement exposure. Penalties under the MCFA and MDTPA can add up quickly: W&A, Wall, and Yates ultimately faced more than $6 million in civil penalties, restitution, and attorneys’ fees. The decision continues a line of Minnesota cases recognizing the Attorney General’s broad consumer-protection authority. Details matter. Although the Attorney General’s enforcement power is broad, it is not boundless. As the Court of Appeals explained, issues of causation, the effectiveness of contractual disclaimers, and the availability of restitution and civil penalties all turn on the specific facts of the case. Effective advocacy at trial and on appeal is critical to developing the facts relevant to liability and damages.