Chicago Business Litigation Lawyer Blog

“Well-Pleaded Facts” Needed to Sustain Products Liability Suit – Osness v. Lasko Products, Inc.

November 5, 2012 | Peter S. Lubin and James V. DiTommaso

A U.S. District judge in Pennsylvania dismissed a woman’s products liability claim due to a lack of sufficient facts in her pleadings to support her claims. In Osness v. Lasko Products, Inc., an Illinois woman brought a putative class action against a company for several consumer rights causes of action. The plaintiff alleged that the company knew about certain defects in a line of box fans it manufactured, but failed to warn consumers. The company’s motion to dismiss argued that the plaintiff failed to allege facts that supported any of her claims.

Lasko Products (“Lasko”), a Pennsylvania-based company, manufactures box fans for home use. In 2006, the Consumer Product Safety Commission (CPSC) announced a recall of about 5.6 million Lasko fans. The recalled fans would have been sold to the public from September 2000 until February 2004. The CPSC announced the recall after receiving reports of fires caused by electrical problems with the fan’s motor.

The plaintiff, Deborah Osness, alleged that Lasko continued to produce fans with the same defect. This led to a second recall of fans by the CPSC in March 2011, covering fans sold to consumers from July 2002 until December 2005. Both recalls occurred after the fans’ two-year warranties expired, according to the plaintiff, so Lasko did not offer a refund. Instead, it offered a “cord adapter” that eliminated the risk of fire but, according to the plaintiff, did not fix the underlying electrical problem. The electrical defect could cause the fan to blow a fuse, allegedly making it unusable.

NPR Reports: “E-Book Pricing Fixing Accusations May Bring Lawsuit”

November 5, 2012 | Peter S. Lubin and James V. DiTommaso

NPR reports:

The Justice Department is threatening to sue Apple and five major publishers for allegedly colluding to raise the price of digital books. Apple persuaded publishers, including Harper Collins, Penguin and Simon and Schuster, to change how they price their e-books before the launch of the first iPad, according to The Wall Street Journal.

DiTommaso Lubin’s Oak Brook and Chicago Attorneys Peter Lubin Named 2013 Illinois Super Lawyer as Class-Action, Business Litigation and Consumer Rights Attorneys

November 1, 2012 | Peter S. Lubin and James V. DiTommaso

Super Lawyers named Chicago and Oak Brook business trial attorneys Peter Lubin Super Lawyers in the Categories of Class Action, Business Litigation and Consumer Rights Litigation. DiTommaso Lubin’s Oak Brook and Chicago business trial lawyers have over a quarter of century of experience in litigating complex class action, consumer rights and business and commercial litigation disputes. We handle emergency business law suits 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.

Peter S. Lubin

online at

NPR Reports: “$1 Billion BOA Lawsuit Claims Mortgage Fraud”

October 31, 2012 | Peter S. Lubin and James V. DiTommaso

The Chicago trial attorneys at our firm have experience in complex business and fraud litigation. We work with some of the top whistle blower and qui tam lawyers in the country. The business fraud law firm of DiTommaso Lubin represents whistleblowers who are pursing qui tam lawsuits at any level of government, including claims under the Illinois Whistleblower Act, the Chicago whistleblower ordinance and the federal False Claims Act. Based in Chicago and Oak Brook, Ill., our Illinois and Naperville, and Chicago qui tam and False Claims Act lawyers stand ready to represent whistleblowers throughout the United States — regardless of whether prosecutors have decided to join the lawsuit. If you know about fraud against a government agency and you’re ready to speak up, you can learn more about whistleblower lawsuits at a free, confidential consultation. To set one up, please contact DiTommaso Lubin online or call 630-333-0333 today.

NPR Reports: “Wal-Mart’s Female Employees File Suit In Tennessee”

October 30, 2012 | Peter S. Lubin and James V. DiTommaso

USA Today Reports:”NCAA seeks to block class action in O’Bannon case”

October 24, 2012 | Peter S. Lubin and James V. DiTommaso

USA Today reports that the NCAA is seeking dismissal of the class action claims by former players including Oscar Robertson because the NCAA’s lawyers claims plaintiffs have changed their legal theories too many times. This potential class action claims that the NCAA has unfairly profited from the players images without paying them for these valuable rights. The article states:

Lawyers defending the NCAA in an anti-trust lawsuit related to the use of college athletes’ names and likenesses say the case should not be certified as a class action, in part, because the plaintiffs changed their legal strategy in a way that is unfair and could mean the NCAA has wasted “significant time and money” responding to the suit.

To read the full article click here.

2012 — Record Year For False Claims Act Recoveries

October 23, 2012 | Peter S. Lubin and James V. DiTommaso

For the fiscal year which ended September 30, 2012 more than $9 billion in civil settlements and criminal fines was recovered by federal and state governments through False Claims Act cases. Moreover, twenty eight out of the thirty largest recoveries were from cases filed by whistleblowers. Not only does this represent a record amount, it more than doubles the previous record set in 2011 of $4 billion, and exceeds the total recoveries over the past three years.

This trend in recoveries is consistent with the increase in cases filed under the qui tam provisions of the False Claims Act over the last three years. In 2009, 433 qui tam cases were filed. In 2010, a record 573 cases were filed, and in 2011, an unprecedented 638 cases were filed by whistleblowers.

Legislative changes designed to encourage suits under the FCA account, at least in part, for the increase in the number of cases filed. In 2009, the Fraud Enforcement and Recovery Act (FERA) was passed, which made several favorable changes to FCA provisions. In 2010, the Patient Protection and Affordable Care Act (PPACA) contained provisions which made it easier for whistleblowers to pursue health care fraud cases. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 strengthened protections for whistleblowers. The increase in recoveries is probably also due to increased enforcement efforts by government entities, including the Justice Department, the SEC, and the IRS.

It is likely that the trend in recoveries will continue. There are already $3.5 billion in settlements reportedly in the pipeline in the new fiscal year.

Service Agreements Require Timely Payment, Compliance with Contractual Terms to Be Enforceable by Consumers – M&B Graphics v. Toshiba Business Solutions

October 18, 2012 | Peter S. Lubin and James V. DiTommaso

A company that leased photocopier machines to a printing company prevailed on a motion for summary judgment in a breach of contract claim brought by the business leasing the copy machines. In M&B Graphics, Inc. v. Toshiba Business Solutions (USA), Inc., the U.S. District Court for the Eastern District of Michigan ruled that the defendant was justified in terminating service agreements for its machines due to the plaintiff’s noncompliance with the terms of the agreements.

M&B Graphics (M&B), a Michigan printing company, began leasing three photocopiers from Toshiba Business Solutions on August 10, 2009. The lease had a term of sixty-three months, with monthly payments of $2,520. The parties also executed service agreements for each of the three copiers. Toshiba would perform routine repairs and maintenance on the copiers, and M&B would pay a flat monthly fee and a per-copy fee. Toshiba had the right to terminate the service agreements if M&B failed to make timely payment of the monthly service fees or failed to use the copiers in strict accordance with Toshiba’s specifications. Either party could terminate the agreements by giving written notice thirty (30) days prior to the anniversary date.

Business Planning — Non-Compete Agreements

October 15, 2012 | Peter S. Lubin and James V. DiTommaso

https://www.youtube.com/watch?v=Ozu72S9wzYA

Non-compete agreements are increasingly more common in today’s competitive business environment.

Non-compete agreements, confidentiality and other restrictive covenants are a great tool for protecting trade secrets, customer lists, and other sensitive information, but only if the agreement is enforceable in a court of law. The issue of enforceability of non-compete agreements is a complex legal question that is the subject of much business litigation. If you are party to a non-compete or confidentiality agreement – whether as an employee or employer – it is helpful to consult with a knowledgeable business litigation attorney like the Hinsdale business litigation attorneys at DiTommaso Lubin. We have represented employees and employers throughout DuPage, Cook, Kane and Lake Counties in non-compete litigation including representing large public corporations and high level executives in lawsuits arising from non-compete agreements. We also draft non-compete and confidentiality agreements for our corporate clients.

Exposing Madoff’s Ponzi Scheme — Our Chicago Fraud and Whistle Blower Lawyers Help Businesses Who Have Suffered From Fraud Recover Their Losses

October 11, 2012 | Peter S. Lubin and James V. DiTommaso

https://www.youtube.com/watch?v=4xYkQnCUl5E

To learn more about our qui tam, blower, fraud, partnership and business dispute practice click here. DiTommaso Lubin’s Chicago business trial lawyers have more than two and half decades of experience helping business clients on unraveling complex business fraud and breach of fiduciary duty cases. We work with skilled forensic accountants and certified fraud examiners to help recover monies missappropriated from our clients and from government. Our Chicago 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 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 sucessfully as possible, helping business clients protect their investements and get back to business as usual. From offices in Oak Brook, near Lake Forest, and Evanston, we serve clients throughout Illinois and the Midwest.

If you know about fraud on the government and are prepared to blow the whistle, and you’d like to discuss how the experienced Illinois qui tam and whistle blower attorneys at DiTommaso Lubin can help, we would like to hear from you. To set up a consultation with one of our Chicago qui tam and whistle blower lawyers, please call us toll-free at 630-333-0333 or contact us through the Internet.