Chicago Business Litigation Lawyer Blog

CNN reports that French Shoe Designer Christian Louboutin lost the first round of a trademark lawsuit seeking to protect his iconic red soled high heels. Louboutin's lawyer blasted the Court's decision and vowed he would fight on in an appeal. The story explains that many designers want to use red soled shoes and don't think they should be excluded from doing so with one designer receiving a monopoly on that color. The story states:

"Everyone sees the flash of red and associates the red with Louboutin," attorney Harley Lewin said Thursday about his client. In fact, Louboutin's red soles have graced many a red carpets, adorning the feet of celebrities Oprah Winfrey, Heidi Klum and Sarah Jessica Parker. ... In his decision Wednesday, U.S. District Judge Victor Marrero acknowleded that in choosing a red sole for his shoes, Louboutin had "departed from longstanding conventions and norms of his industry," to create a product, "so eccentric and striking that it is easily perceived and remembered." However, Marrero went on to say that, "Louboutin's claim to the 'the color red' is, without some limitation, overly broad and inconsistent with the scene of trademark registration." "This was a trademark that never should've been issued," David Bernstein, attorney for the defendant, Yves Saint Laurent said. ... Judge Marrero's decision drew parallels between painters and fashion designers, calling them both members of a creative industry where no one should be barred from using color to achieve their aesthetic. Doing so could, "interfere with creativity and stifle competition." Bernstein agrees. "No designer should be able to monopolize a color." ... Lewin says his client "separated his shoes from everyone else's by using a red sole." Lewin said he's never had such an outpouring from his fellow attorneys, law professors and members of the fashion industry, telling him, "This [verdict] is an abomination. Tell your client to appeal."

You can read the full story by clicking here.

Continue reading "CNN reports: Designer Loses First Round of Trademark Lawsuit on Red Soled High Heels -- Lawyer Vows to Continue the Fight on Appeal and Lambasts Judge's Decision" »

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Fraud Magazine reports on the new changes in federal false claims act. The article states:

A 123-year-old law now has new teeth to better fight today’s tricky fraudsters. Enacted in 1863, the U.S. federal False Claims Act, 31 U.S.C. §§ 3729-3733 (FCA), was designed to fight unscrupulous contractors during the Civil War. The FCA created liability for persons that knowingly submit, or cause another person or entity to submit, false claims for payment of government funds. Today, violators are liable for three times the amount of government damages as well as civil penalties of $5,500 to $11,000 per false claim. ...

The U.S. Congress reinvigorated the FCA in 1986 when it changed the law in a number of ways. Among other things, the amendments bolstered the act’s qui tam provisions, provided for treble damages — allowing courts to triple the amount of the actual damages to be awarded — and added an anti-retaliation provision that imposes liability on any employer who takes retaliatory actions against an employee because of the employee’s lawful acts in furtherance of a qui tam action. This ushered in a new era for the FCA because the amendments triggered an increase in the number of qui tam suits: now relators initiate the bulk of cases under the FCA. Also, the amendments shifted the FCA’s focus from fraud involving defense contractors to a wide array of industries — most notably health care. This has led to the federal government’s significant and increasing recoveries under the FCA.

In May 2009, Congress further revamped the FCA by passing the Fraud Enforcement and Recovery Act of 2009 (FERA), which included amendments to the FCA. The amendments made key procedural changes to the FCA and expanded the scope of liability (particularly as it relates to health-care providers). The FERA also set aside $165 million to aid fraud detection and enforcement efforts.

These amendments, coupled with a handful of other legislative changes and administrative actions, are already having a material effect on how the government and private sector are combating fraud.

BY THE NUMBERS: 2010 WAS A GOOD YEAR FOR FRAUD

According to a Nov. 22, 2010, U.S. Department of Justice (DOJ) press release, the DOJ "secured $3 billion in civil settlements and judgments in cases involving fraud against the government in the fiscal year ending Sept. 30, 2010." Of that sum, $2.3 billion is attributable to cases initiated by whistle-blowers under the FCA relator provisions. This brings the total amount of civil recoveries since the previous major overhaul of the FCA in 1986 to more than $27 billion. This total does not take into account settlements after Sept. 30, 2010, including but not limited to $600 million in civil penalties that were part of a larger $750 settlement with GlaxoSmithKline involving the manufacture and sale of adulterated drug products and three settlements announced in December 2010: 1) $102 million in civil penalties that were part of a $203.5 million global settlement with Elan Corporation resolving off-label marketing allegations, 2) a $421 million settlement stemming from Average Wholesale Price violations by Abbott Laboratories Inc. and Roxanne Laboratories Inc. and 3) a $280 million settlement with Dey, Inc. to resolve marketing spread allegations.

Not all of this money goes back to the government. Successful relators are entitled to collect a percentage of any recovery from the defendant. The range of the relator’s potential recovery, however, depends on whether the government intervened in the qui tam action.

The article goes on to describe what lead the government to beef up the qui tam and whistle blower laws. You can read the full article by clicking here.

Continue reading "Fraud Magazine Reports: "In the Wake of Significant Legislative Changes, the Civil False Claims Act Hauls in $3 Billion in Fiscal Year 2010"" »

Continue reading "Video -- The Federal Goverment Loses Hundreds of Billions of Dollars Each Year to Fraud -- Our Chicago Business Trial and Fraud Lawyers Bring Qui Tam and Whistle Blower Claims to Assist in Recovering Some of Those Monies" »

Barry Minkow, who, while still in high school, founded ZZZZ Best, a carpet cleaning and restoration company that turned out to be a massive Ponzi scheme, talks about one of the many ways he manipulated auditors.

Continue reading "Video -- Fraudster Barry Minkow Describes How He Conceals Fraud From Auditors -- Our Chicago Litigation Attorneys Combat Business Fraud and Breaches of Fiduciary Duty" »