Articles Posted in Business Disputes

A bank’s negligence suit against a check-cashing company was dismissed when the district court found that there was no private right of action under which the bank could sue to enforce regulations regarding the safeguarding of personal financial information.

USAA provides banking services to members and veterans of the United States military. PLS Group, Inc. provides payday loan and check cashing services at 300 retail locations in eleven states. PLS charges its customers a fee to cash checks or purchase money orders. PLS often cashes checks drawn on USAA bank accounts. When it cashes a check, PLS obtains information about the drawer of the check, including their name and signature, account and routing numbers, and encoded information used to verify the legitimacy of the checks.

In October 2012, PLS settled a suit brought by the Federal Trade Commission which alleged that PLS did not properly secure its’ customers’ information. Despite making changes to its processes, problems with unauthorized access to customers’ personal information continued. Nine individuals were later indicted by the government for engaging in a check-cashing scheme that used information from PLS employees to create fraudulent checks. Some of these counterfeit checks were drawn on USAA bank accounts. PLS employees involved in the scheme received a portion of the proceeds from the scheme. Continue reading ›

Super Lawyers named Chicago and Oak Brook business trial attorney Peter Lubin a Super Lawyer in the Categories of Class Action, Business Litigation, and Consumer Rights Litigation. Patrick Austermuehle of the Firm was named a Rising Star again.  Peter Lubin and Patrick Austermuehle have consistently won this honor which is only given to 5% of Illinois’ attorneys each year.

DiTommaso Lubin’s Oak Brook and Chicago business trial lawyers have over thirty years experience in litigating complex class action, consumer rights and business and commercial litigation disputes. We handle libel and defamation cases, First Amendment issues and emergency business lawsuits involving injunctions, and TROS, covenant not to compete, franchise, distributor and dealer wrongful termination and trade secret lawsuits and many different kinds of business disputes involving shareholders, partnerships, closely held businesses and employee breaches of fiduciary duty. We also assist businesses and business owners who are victims of fraud.

DiTommaso Lubin’s Wheaton, Naperville, and Aurora litigation attorneys have more than two and half decades of experience helping business clients unravel the complexities of Illinois and out-of-state business laws. Our Chicago business, commercial, class-action, and consumer litigation lawyers represent individuals, family businesses and enterprises of all sizes in a variety of legal disputes, including disputes among partners and shareholders as well as lawsuits between businesses and consumer rights, auto fraud, and wage claim individual and class action cases. In every case, our goal is to resolve disputes as quickly and successfully as possible, helping business clients protect their investments and get back to business as usual. From offices in Oak Brook, near Naperville and Glen Ellyn, we serve clients throughout Illinois and the Midwest.

A technology company that was accused of purchasing intellectual property and assets in a deceptive manner was denied its motion to dismiss a complaint against it for breach of contract and fraud. The plaintiffs alleged that the technology company deceived them, inducing them to sell their assets and intellectual property with promises that the company would maintain and expand the WiFI network that the plaintiffs ran when the technology company intended only to use the IP and assets to attract new rounds of investment. The court found that the technology company failed to develop its arguments in its motion and that its failure to elaborate and cite authority waived its arguments.

Chirstiaan Cilliers, Daphne Cilliers, World WiFi Network, Inc., and Sunrise Global Marketing, Inc. sued Cobalt Holdings, Inc., in federal court alleging fraud, breach of contract, and several state-law claims. The plaintiffs claimed that Cobalt fraudulently induced them to enter into agreements to sell all of their business assets and intellectual property, consisting of a roaming WiFi network it had developed and maintained in several Caribbean countries. The plaintiffs alleged that Cobalt told them that it intended to further develop the WiFI network when it, in fact, held no licenses to operate WiFI networks in the Caribbean and wanted to acquire the network and intellectual property solely to attract investors as part of a planned round of funding. Continue reading ›

Bitcoin is a cryptocurrency which is an electronic form of cash. It is decentralized without the need for a central bank or administrator. The need for an intermediary is none, as it can be sent
from user-to-user. Since its technology is relatively new, litigation surrounding this type of exchange is being closely followed by those who have invested in it and those who are wanting
to know of the direction of the future in exchange. Of course, it would not be long until the way transactions took place would be tested in the courts on an international and local level.
Since its reach has no real boundaries, we will look to a decision held in Shenzhen, China. A ruling was made involving the dispute over an equity transfer case. The matter then went before
the International Court of Arbitration. The currencies that the case concerned included: Bitcoin, Bitcoin Cash, and Bitcoin Diamond. There was so much of a buzz that the decision generated
that the Cryptocurrency news provider posted:

“Chinese court confirms Bitcoin protected by law. Shenzhen Court of International Arbitration ruled a case involving cryptos. Inside the verdict: CN law does not forbid owning & transferring bitcoin, which should be protected by law bc its property nature and economic value.”

The case, therefore, has reached to affect property and economic rights as viewed by the law. How it affects us here in the USA is yet to be seen. The decision applied followed a ruling held
in Moscow. The very classification of Bitcoin and other digital currencies as “property” could even lead to tax implications. Let’s remember this: Bitcoin and cryptocurrencies are not
considered currencies, and are not backed by the government or law. However, they are not illegal. That is the backdrop that is being worked within the dealing with the relatively new medium
of exchange. Basically, the ruling means that there is no prohibition against Bitcoin ownership and transfer in China. Continue reading ›

Trump and Today’s America

Part of the Trump Brand has come about from a success story that has arisen due to being able to overcome being bankrupt.  Trump turned around and transformed the brand of a Reality TV show series by the name of, “The Apprentice,”  to eventually triumph from TV into becoming the President of the United States of America.  Did his bankruptcy define his business? Most likely not.  A story emerged, one of a businessman transition to the leadership of a country.

The Decision to File

Of course, filing a bankruptcy is a huge decision.  Sometimes the trigger can be circumstances beyond control.  Even in today’s age, there may still be a stigma applied, as some view it as a moral failure.  As it stands and within a year, we have seen corporate bankruptcies at their highest point.

When a company files for a Chapter 11 bankruptcy, it seeks protection from creditors in trying to restructure debt.  The judge oversees this.  Effectively, it transfers the ownership of the company from shareholders to the creditors.  For the most part, shareholders are the ones that suffer the greatest loss.  Creditors are normally made whole.

What is at Stake?

The tax scheme makes allowances when creditors and shareholders of failing companies write off losses.  In 2018, the new tax law adds uncertainties, but shareholders and creditors knew that losses incurred in 2018 would face the new corporate tax rate of 21%, and so the government would only pick up 21% of the losses. Continue reading ›

A suburban business in Chicago is under scrutiny for implementation of a system in which the way the business allegedly sterilized caused emissions of a cancer-causing substance. The operational facility provides sterilization services to the medical, pharmaceutical and food industries.  Ironically, the health damage by its emissions cause might make locals worse off.

Consequently, a change was made to equipment that was being used had been installed.  Governor Bruce Rauner then, eventually, requested closing the plant completely which was also co-owned by his former private equity firm.  It was not looking good on him and locals were very angry.  Whether or not, and the type of action that would have been taken in circumstances, but for, that situation are not known. Local politicians added pressure and since we are dealing with cancer, people are not taking this issue lightly at all.

Right now, as it stands, the Attorney General, Lisa Madigan, believed that further investigations of air quality with analysis by experts would be necessary in order to make a case.  Perhaps, the one-off situation is not enough to gauge that there has been negligence or any breach that is substantial.  This would constitute as information that only a state or federal Environmental Protection Agency would be able to give in such circumstances.

It was the likelihood of the emissions ranged from “probably carcinogenic” to “carcinogenic to humans,” that became grounds for tests to be expedited.  It is speculated that the new system is less harmful, but can the damage be reversed?  Even a reduction by 90 percent cannot do much to whatever is out there in the atmosphere.  These issues are problematic, affect multiple residents’ health and will require in-depth investigation.  A school is even within the vicinity of impact.  If a class action arises, this will be one not taken lightly. Continue reading ›

A Judge has forced a legal dispute to go to mediation instead of hearing the matter in a trial. The matter is over a natural gas and energy plant issue and involves real estate and land being optioned between two energy plants. Both sides of the dispute have been postponed and to be heard back in court later. The Judge did not want to deal with the matter, as he felt that a resolution could be made.

How did the Court become Involved?

The way the court became involved was with an appeal being filed by the Lordstown Industrial Park.  The Court of Appeals was to decide whether real estate matters should be determined by court or arbitration.

Does Arbitration or Mediation Produce a Different Outcome?

Sometimes channeling through a different medium to litigation produces a different result.  In this case, that is what one of the parties’ feel.  The result may not be reasonable, the decision will then be made to go to litigation which will then drive up time and costs.  One party wants resolution, the other does not.  In their defense, mediation has been a tried option several times and has failed each time.  Issues that cannot be resolved remain outstanding, and it is not just one but quite a few. Continue reading ›