Articles Posted in Business Disputes

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Buying a used car, truck, or SUV should be an exciting experience, but all too often, consumers find themselves facing fraud and deceptive practices by unscrupulous auto dealers. When you’re caught in the web of auto dealer fraud, it’s crucial to have a skilled and experienced Illinois Consumer Rights Lawyer by your side. Why? Because these cases involve complex machines, intricate laws with numerous pitfalls, and a deep understanding of the Illinois Consumer Fraud and Deceptive Business Practices Act. At our Auto Dealer Fraud Firm, we possess the experience and knowledge you need, having successfully handled hundreds of auto fraud cases and even taken many Consumer Fraud Cases to federal and state appellate courts in Illinois and across the nation.

The Complexity of Auto Dealer Fraud Cases

Used vehicles are intricate machines with countless components and systems, making it challenging for the average consumer to detect hidden issues or fraudulent practices. This complexity is compounded by the fact that auto dealer fraud cases often involve a web of deceptive tactics, such as odometer rollbacks, undisclosed accidents, or hidden defects.

The Legal Pitfalls

Navigating auto dealer fraud cases requires a deep understanding of the legal landscape, including state and federal consumer protection laws. In Illinois, the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFA) plays a central role in protecting consumers from unfair and deceptive practices. However, pursuing a claim under ICFA can be legally complex and rife with pitfalls.

Here are some of the legal challenges you may encounter:

  1. Proving Intent is Not Necessary for Misrepresentations: Intent is not needed for fraud claims under the ICFA involving misrepresentations and dealers are strictly liable for material misstatements even if they were for instance unaware of accident or flood damages.  However intent needs to be proven for material commissions and we have expert witnesses and other methods for establishing such intent including obtaining car auction records
  2. Establishing Material Misrepresentation: It’s not enough to show that a misrepresentation occurred; it must also be proven that the misrepresentation was material, meaning it had a significant impact on your decision to purchase the vehicle.
  3. Navigating Arbitration Clauses: Many dealer contracts include arbitration clauses, which can complicate the legal process. An experienced attorney can help you navigate these clauses to protect your rights.
  4. Statute of Limitations: There are strict deadlines for filing auto dealer fraud claims, and missing these deadlines can result in the loss of your right to pursue a case.

Why Our Auto Dealer Fraud Firm is the Right Choice

When facing auto dealer fraud, you need a legal team that not only understands the complexities of the vehicles but also has a proven track record in handling these cases. At our Auto Dealer Fraud Firm, we have the experience you can trust. Here’s why you should choose us:

  1. Extensive Experience: We have successfully handled hundreds of auto fraud cases, gaining invaluable insights and expertise along the way.
  2. Appellate Experience: We’ve taken Consumer Fraud Cases to federal and state appellate courts in Illinois and throughout the country, showcasing our dedication to achieving justice for our clients.
  3. In-Depth ICFA Knowledge: We are well-versed in the Illinois Consumer Fraud and Deceptive Business Practices Act, ensuring that your case is handled with precision and expertise.
  4. Proven Results: Our track record of securing favorable outcomes for clients speaks for itself.

Continue reading ›

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Recent Illinois law regarding the defense of officers and directors of corporations and LLCs encompasses several key factors:

1. Fiduciary Duties: Officers and directors of corporations and LLCs are fiduciaries, holding duties of good faith, loyalty, and honesty to the corporation. They are not permitted to enhance their personal interests at the expense of the corporation’s interests, and should not be in a position where their own individual interests might interfere with their duties to the corporation.

2. Business Judgment Rule: Under the business judgment rule, a presumption exists that corporate decisions made by an officer or director are made on an informed basis and with an honest belief that the action was in the corporation’s best interests. This presumption can be rebutted by allegations that a director acted fraudulently, illegally, or without sufficient information to make an independent business decision [3].

3. Contractual Obligations: Illinois law provides officers of a corporation with a qualified privilege against liability for tortious interference with a contract with the corporation. To overcome this privilege, the plaintiff must assert and plead that the corporate officers acted with malice and without justification.

4. Piercing the Corporate Veil: Generally, corporate officers and directors are not personally liable for the corporation’s actions, as corporations are considered distinct legal entities separate from their officers, shareholders, and directors. However, under certain circumstances, the corporate veil can be pierced to hold officers and directors personally responsible, such as when there is such unity of interest and ownership that the separate personalities of the corporation and the individual no longer exist, or adherence to the fiction of separate corporate existence would sanction fraud or promote injustice.

5. Specifics for LLCs: In the context of LLCs, allegations that officers and directors disguised equity contributions as loans, enabling the company to make interest payments to insiders during a time when the company was either insolvent or undercapitalized, could be sufficient to state a claim for breach of fiduciary duty under Illinois law.

These principles form the foundation of a defense for corporate officers and directors in Illinois. Continue reading ›

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In the dynamic landscape of condominium and homeowners’ associations (HOAs), board officers and directors are tasked with making crucial decisions to maintain the welfare of their communities. However, there are times when disputes arise, leading association members or condo owners to bring legal action against these leaders. At DiTommaso Lubin — the Business Litigators, we concentrate on defending condominium and HOA board officers and directors facing lawsuits under Illinois law. In this blog post, we will explore the unique legal challenges in Illinois and our legal team’s indispensable roles in safeguarding these community leaders.

Understanding Illinois Condo & HOA Governance

Illinois, like many states, has a comprehensive set of laws and regulations governing condominiums and homeowners’ associations. These laws define the roles and responsibilities of board officers and directors, as well as the rights and obligations of association members or condo owners. Compliance with these laws is essential to maintaining the harmony and functionality of these communities.

Common Legal Issues Faced by Board Officers and Directors in Illinois

Board officers and directors in Illinois can find themselves entangled in various legal disputes, including:

  1. Breach of Fiduciary Duty: Board members owe a fiduciary duty to the association members or condo owners. Allegations of mismanagement, conflicts of interest, or self-dealing can lead to claims of breaching this duty.
  2. Failure to Enforce Declarations and Bylaws: Ensuring the consistent enforcement of community rules and regulations is a crucial responsibility of board members. Failure to do so can result in legal actions by residents who believe their rights have been violated.
  3. Financial Mismanagement: Improper handling of association funds, budgetary issues, or a lack of transparency in financial matters can lead to allegations of financial mismanagement and legal consequences.
  4. Discrimination and Fair Housing Act Violations: Board officers must ensure that all residents are treated fairly and in compliance with fair housing laws. Allegations of discrimination can result in legal action under both state and federal laws.
  5. Contract Disputes: Board officers and directors often enter into contracts for services and maintenance. Disputes can arise if one party feels that the terms of the contract have not been fulfilled.

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In the ever-evolving world of technology and the internet, antitrust issues have become increasingly prevalent. One of the most notable cases in recent memory involves Google and its alleged anticompetitive practices in the app distribution market. The case brought against Google by Epic Games, the creator of the popular game Fortnite, has garnered significant attention and ended with an antitrust loss for the tech giant. In this blog post, we’ll delve into the details of the Epic Games case and discuss what this loss means for Google and other tech giants.

The Epic Games Case

Epic Games filed a lawsuit against Google in August 2020, alleging that the company engaged in anticompetitive behavior by monopolizing the distribution of Android apps through the Google Play Store. The crux of Epic Games’ argument was that Google’s restrictive policies and the 30% commission fee it charged to developers for in-app purchases were stifling competition and innovation in the app market.

In July 2021, a U.S. District Judge ruled in favor of Epic Games, finding that Google had indeed violated antitrust laws by maintaining its monopoly over the Android app distribution market. The judge’s decision was a significant blow to Google and has far-reaching implications for the tech industry as a whole.

Implications of the Antitrust Loss

  1. Increased Scrutiny on Tech Giants: Google’s antitrust loss in the Epic Games case is part of a broader trend of increased scrutiny and legal action against major tech companies. This case, along with similar cases involving Apple, Facebook, and Amazon, highlights growing concerns about the dominance and market power of these tech giants.
  2. Potential Changes in App Distribution: The ruling against Google could lead to changes in how app distribution platforms operate. It may encourage alternative app stores to emerge, offering developers and consumers more choice and potentially lower commission fees. This could foster greater competition in the app market.
  3. Impact on Google’s Business Model: Google’s revenue model heavily relies on advertising and its app ecosystem. The loss in the Epic Games case could force Google to reconsider its commission structure for app developers, potentially impacting its bottom line.
  4. Precedent for Future Cases: The ruling against Google sets a legal precedent that could be used in future antitrust cases against tech companies. It strengthens the argument that dominant players in the industry should not use their position to stifle competition unfairly.
  5. Calls for Regulatory Reform: The Epic Games case has reignited calls for regulatory reform in the tech industry. Policymakers and regulators may use this case as evidence that existing antitrust laws need to be updated to address the unique challenges posed by the digital economy.

Google’s antitrust loss in the Epic Games case serves as a reminder that even tech giants are not immune to legal challenges and regulatory scrutiny. This case highlights the ongoing debate surrounding the power and influence of major tech companies in today’s digital landscape. As the tech industry continues to evolve, it is likely that we will see more antitrust cases and regulatory actions aimed at promoting competition and innovation while preventing anticompetitive behavior. The outcome of these cases will shape the future of the tech industry and its impact on consumers and developers alike.

Continue reading ›

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You’ve probably already heard of Alex Jones, but if you haven’t, or you need a refresher, he’s the right-wing conspiracy theorist who has used his media company, InfoWars, to promote the idea that the Sandy Hook Elementary School shooting was a giant hoax created and promoted by anti-gun activists. Among other things, Jones claimed the grieving families and survivors of the massacre were “crisis actors” who were paid to lie about the mass shooting.

Jones has built a huge following, and many of them believe his lies. Many of his listeners even reached the point of actively seeking out Sandy Hook survivors and the families of those slaughtered, threatening and harassing them for their alleged lies.

The families sued Alex Jones for defamation and were collectively awarded $1.1 billion in damages.

Soon after that ruling, Jones filed for Chapter 11 bankruptcy, which would have allowed him to restructure his business and potentially avoid paying the money he owes those families.

A judge recently ruled that Jones could not use bankruptcy as a means to avoid paying the $1.1 billion payments. The families took this as a victory, but Jones says he isn’t done fighting.

Jones’s net worth was valued at $14 million, yet he claims he has no money. He says he is $1 million in debt, and that the millions of dollars generated by his media company go to pay the bills, making the $1.1 billion ruling hypothetical. He also says he will continue to appeal the decision.

Meanwhile, he is asking his listeners to make donations to help him pay his legal bills. But those bills and the huge ruling against him have not stopped him from spending close to six figures in one month, much of it on lavish meals and entertainment. Continue reading ›

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Introduction

Shareholder derivative lawsuits are legal actions brought by individual shareholders on behalf of a corporation against its officers, directors, or other insiders. These lawsuits typically allege misconduct, mismanagement, or breaches of fiduciary duties by those in control of the corporation. Defending against a shareholder derivative lawsuit can be complex and challenging, but with the right strategies and considerations, it is possible to protect the interests of both the corporation and its shareholders. In this blog post, we’ll explore the key steps and considerations involved in defending against a shareholder derivative lawsuit.

1. Understand the Basics of Shareholder Derivative Lawsuits

Before diving into defense strategies, it’s crucial to have a clear understanding of what a shareholder derivative lawsuit entails. These lawsuits are filed on behalf of the corporation, not individual shareholders, and seek to hold company insiders accountable for alleged wrongdoing. Understanding the legal framework is the first step in formulating an effective defense.

2. Evaluate the Merits of the Lawsuit

The first line of defense in any shareholder derivative lawsuit is a thorough evaluation of the merits of the claims. Engage experienced legal counsel to assess the allegations and evidence. Determine whether the allegations have a factual basis and whether they meet the legal requirements for pursuing a derivative action. If the claims lack merit, you may have grounds to seek dismissal. Continue reading ›

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Any contract you’ve signed with a company (including the “Terms of Service” most of us don’t read before clicking the box next to “I agree that I have read and agree to the terms”) has included a clause about where you and that company can resolve legal disputes. In some cases, it’s in a certain state, or even a specific county, but increasingly courts have been forcing their customers, vendors, and employees into arbitration.

Arbitration was originally designed as a way for companies to settle legal disputes with other companies outside of court so they wouldn’t flood the court system. But several years ago companies started including arbitration clauses in their contracts with individuals, often without those individuals realizing they were signing away their rights to a fair trial.

As the issue of companies getting out of control when it comes to their arbitration clauses has become more widespread, judges and legislators have started taking measures to curb companies’ use of arbitration agreements with individuals – especially when it comes to their customers and employees.

So far, Pennsylvania is the only state to pass a law requiring all corporations doing business in the state to consent to being sued in Pennsylvania court by anyone, for conduct the corporation engaged in anywhere. Continue reading ›

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Donald J. Trump is already facing dozens of criminal charges for allegedly falsifying business records and misusing campaign funds in an alleged attempt to influence the 2016 presidential election. Yet Trump is back in court suing his former attorney, Michael Cohen, for $500 million.

The lawsuit accuses Cohen of talking publicly about things that should have remained confidential between him and his former client. The lawsuit also accuses Cohen of telling lies about Mr. Trump in the media and in Cohen’s two books, Disloyal: A Memoir: The True Story of the Former Personal Attorney to President Donald J. Trump, and Revenge: How Donald Trump Weaponized the U.S. Department of Justice Against His Critics.

The first book was published prior to the 2020 presidential election, whereas the second was released in 2022. Among other things, the books accuse Trump of being a racist and of lying about just about everything. Continue reading ›

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We all know attorneys are not allowed to represent both sides in a lawsuit, but what if the law firm currently representing one side used to represent the other side? Wouldn’t that be considered a conflict of interest? It’s especially likely to pose a problem if the issue involved in the lawsuit is the same issue the law firm previously handled for the other side.

If the law firm had recently represented the company they’re currently suing, it’s obvious how that could cause problems. But what if the prior legal work in question was performed more than a decade ago? Would that be long enough to erase the conflict of interest?

All that is in question as Walgreens seeks to disqualify a law firm currently filing a lawsuit against it on behalf of major health insurance providers.

Walgreens claims the law firm, Crowell & Moring, has breached its fiduciary duty to the giant retail company by representing major health insurers suing Walgreens over drug prices. The law firm sought to have the claims dismissed, but U.S. District Judge Virginia Kendall said Walgreens had provided enough evidence to keep their claim alive, at least for now. Continue reading ›

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A Call from a Friend Led Him to a Multi-Million-Dollar Case

A lot of people tend to assume lawyers have enormous salaries, but a lot of lawyers, especially those working at small firms, make only a modest income. So, the millions of dollars that might be on their way to attorney David Wasinger as part of a settlement agreement he negotiated and a case he won is anything but business as usual for him.

Wasinger is the only partner of a small law firm in St. Louis, Missouri. He works with just four other lawyers and his firm handles mostly business disputes. He had never represented a whistleblower until he got a call from an old business acquaintance in early 2012.

A whistleblower is someone who works in an organization that is allegedly committing fraud against the government, and they decide to alert the authorities. Because whistleblowers are risking their jobs and their reputation, they usually receive 15-25% of the settlement or court-ordered award that comes out of the lawsuit as an incentive to alert the government to fraud.

A share of that money goes to the lawyers representing the whistleblower, which is why whistleblower cases are highly competitive. Wasinger’s position is unique in that he didn’t compete to represent this client – the client reached out to him because they already had a relationship. When you’re blowing the whistle on fraud worth billions of dollars, you need someone you can trust.

The first lawsuit Wasinger brought to court accused Bank of America’s Countrywide unit of engaging in widespread fraud. In January of 2023, the U.S. Attorney’s office in Manhattan announced it would be asking for as much as $2.1 billion in penalties from the bank after a jury found it to be guilty of fraud. Continue reading ›

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