Articles Posted in Best Business And Class Action Lawyers Near Chicago

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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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In a world where consumer lawsuits and class actions seem to be on the rise, businesses are constantly seeking effective strategies to defend themselves against potential legal challenges. One strategy that often flies under the radar but can be a game-changer is product recalls. While recalls are typically viewed as an admission of fault, they can actually serve as a powerful defense strategy, potentially short-circuiting class action lawsuits before they gain traction. In this blog, we’ll explore how recalls can be a great defense strategy for businesses.

1. Swift Action and Responsibility

One of the primary reasons recalls can be an effective defense strategy is the swift action and responsibility they demonstrate. When a company identifies a potential safety issue with one of its products and voluntarily recalls it, they are taking proactive steps to protect their consumers. This responsible and proactive approach can help build goodwill with customers and regulators.

By recalling a product quickly, a company can show that they prioritize safety over profit, which can make it challenging for plaintiffs to argue that the company was negligent or intentionally harmed consumers. Instead of facing a drawn-out legal battle, the company can focus on rectifying the issue and rebuilding trust.

2. Mitigation of Damages

Recalls also allow companies to mitigate potential damages, which can be a significant factor in deterring class action lawsuits. When a company recalls a product, they can take it off the market, preventing further harm to consumers and limiting potential damages. This swift action can reduce the overall number of affected consumers and the associated financial impact.

In a class action lawsuit, plaintiffs often seek damages for medical bills, lost wages, pain and suffering, and other related costs. By recalling the product early, a company can argue that they took reasonable steps to prevent these damages from occurring or escalating. Continue reading ›

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Corporate veil piercing is a legal concept that allows a court to hold individual shareholders or owners of a corporation personally liable for the corporation’s actions or debts. It is a complex legal doctrine that is typically associated with business law, but in the case of Oliver v. Isenberg, 2019 IL App (1st) 181551-U, it was invoked in the context of family law. In this blog post, we will explore the unique application of veil piercing in this case and its implications for corporate liability in family law matters.

Background of the Case

Oliver v. Isenberg was primarily a family law case involving child custody and visitation rights. However, a significant twist in this case involved the issue of veil piercing, which emerged when Mr. Oliver sought to hold Ms. Isenberg personally liable for certain corporate debts.

The Legal Issues

  1. Veil Piercing in Family Law: Veil piercing is a legal doctrine more commonly associated with business law. It allows a court to disregard the legal separation between a corporation and its owners when certain conditions are met. In Oliver v. Isenberg, the issue was whether this doctrine could be applied in a family law context.
  2. Corporate Debts and Personal Liability: Mr. Oliver argued that Ms. Isenberg had manipulated the family’s corporate assets and finances to avoid paying child support and alimony. He contended that her actions were tantamount to piercing the corporate veil, making her personally liable for the outstanding financial obligations.
  3. Complex Legal Terrain: Veil piercing cases are notoriously complex, requiring the court to consider various factors, including whether the corporation was used to commit fraud, evade legal obligations, or if it lacked a true separate identity from its owners. In the family law context, this complexity was compounded by the emotional and personal nature of the dispute.

Continue reading ›

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As a business owner, partner, or shareholder, complex disputes may arise that require efficient legal resolution. Choosing the right court to file suit can be more complex than one might initially think, especially in cases involving breach of fiduciary duty claims. A recent case from the US District Court for the Western District of Wisconsin, Bare v. Al. Ringling Brewing Co., Inc., 21-CV-642-JDP, 2022 WL 2315594 (W.D. Wis. June 28, 2022), demonstrates that complex issues of federal court jurisdiction may preclude bringing certain claims in federal court, even though that may be a more appealing jurisdiction than state court.

First, it is important to understand the choice you may face in deciding which venue to pursue a potential claim. In cases where there are multiple claims or causes of action, a plaintiff may have the option to file suit in federal court. Federal jurisdiction typically arises when the case involves a federal question, such as a claim arising under federal law, or when there is diversity jurisdiction – meaning that the parties are residents of different states and the amount in controversy exceeds $75,000. However, when there are also state law claims that arise from the same set of facts, the plaintiff must consider whether to litigate these claims in state court or to consolidate them with the federal claims.

One advantage of bringing all claims, both federal and state, in federal court is the possibility of greater efficiency in the litigation process. This is because federal courts often have more resources and can handle cases more quickly than their state court counterparts. Additionally, federal court judges tend to have more experience dealing with complex legal issues, which may be particularly beneficial in cases that involve intricate federal questions. Consolidating claims in federal court also allows for the resolution of all claims in a single forum, which can save time and resources for all parties involved.

On the other hand, there are potential disadvantages to bringing state law claims in federal court. Federal courts are courts of limited jurisdiction, meaning that they can only hear certain types of cases. If a federal court decides it does not have jurisdiction over the state law claims, the plaintiff may have to litigate these claims in state court, essentially splitting the case into two separate lawsuits. This can be both time-consuming and costly. Furthermore, federal courts will apply state law to state law claims, and there is a risk that a federal court may misinterpret or misapply the relevant state law, leading to an unfavorable outcome for the plaintiff. Continue reading ›

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In theory, when people talk about online advertising, they could be talking about advertising on a variety of platforms. In addition to Google, each social media platform has its own advertising options. Amazon and Bing also have advertising. But for most people, online advertising is synonymous with Google Ads. Google has the largest share of online advertising by far, accounting for almost 29% of the total digital advertising revenue generated in 2021.

The U.S. Department of Justice, along with eight states, is suing Google for allegedly abusing its monopoly on digital advertising. According to the lawsuit, Google systematically aimed to control large portions of the high-tech tools involved in digital advertising so they could control the market.

By filing the lawsuit, the Department of Justice is hoping to force Google to sell all of its ad technology products, including the software it uses to buy and sell ads, the marketplace it uses to complete the transactions, and the service it uses to display ads across the internet. The lawsuit is also seeking to force Google to stop engaging in allegedly anticompetitive practices. Continue reading ›

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We’ve all heard stories of the plucky entrepreneur who started a game-changing business and managed to sell it for millions of dollars. It’s a great rags-to-riches story, and it proves the American Dream is real. But what if the business is fake?

Charlie Javice was one of those young entrepreneurs. The company she started was called Frank, and the idea was to simplify the financial aid process for college students. When JP Morgan bought the company from Javice in 2021, it was valued at $175 million, and Javice was made managing director for student solutions. Now JP Morgan is suing her for allegedly exaggerating the company’s value … by a lot.

College students are a goldmine for banks. Almost all college students need to take out a loan in order to pay for their higher education, loans they spend decades paying off while the banks collect interest.

A lot of college students are also taking out credit cards for the first time, and most of them have not been taught how to use credit cards to their advantage. Instead, they’re more likely to end up in debt to the credit card companies.

According to court documents, when JP Morgan bought Frank, Javice allegedly told the bank’s executives that the company had more than 4 million users. The idea was that, by buying Frank, JP Morgan would gain access to a database containing the names and contact details of all those users who would no doubt be in need of financial assistance and a bank to provide its services. Continue reading ›

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Under the new federal “Speak Out Act,” employers will no longer be able to enforce pre-dispute non-disclosure and non-disparagement clauses to disputes involving sexual assault and sexual harassment claims. The new law, which passed with bipartisan support in Congress, was signed into law by President Biden on December 7. The new law took effect immediately.

The goal of the new law is to prevent the practice of using pre-dispute agreements to silence employees from reporting sexual impropriety in the workplace. Employers’ use of non-disparagement agreements (NDAs) to keep employees’ sexual harassment claims quiet came under scrutiny during the #MeToo movement.

The exact impact of the new law is not clear yet, however. A key limitation to the law is its application only to pre-dispute agreements. This means that NDAs containing non-disclosure or non-disparagement clauses entered into after a dispute concerning sexual assault or harassment has arisen are not prohibited or covered by the new law. However, employers still cannot preclude employees from reporting violations of employment laws to agencies entrusted with enforcing such laws, like the Equal Employment Opportunity Commission.  Additionally, the law does not define the term “dispute,” making it unclear whether a dispute requires the filing of a lawsuit or whether a complaint to a manager or HR qualifies as a dispute. Continue reading ›

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The U.S. Food and Drug Administration recently published a proposed rule that, if implemented, would update the labeling standards that food products must meet in order to be labeled as “healthy.” The FDA first established a definition for “healthy” in 1994, and at that time nutrition science and federal dietary guidance focused more on the individual nutrients contained in food. According to the FDA, the proposed rule would “align the definition of ‘healthy’ with current nutrition science, the updated Nutrition Facts label and the current Dietary Guidelines for Americans,” with the goal of assisting consumers to increase their consumption of under-consumed dietary components.

The proposed rule would achieve this goal by requiring “healthy” foods to contain a minimum quantity of at least one of the specified food groups or subgroups recommended by the Dietary Guidelines such as fruits and vegetables, while limiting over-consumed ingredients that may lead to negative health consequences such as sodium or added sugars. The FDA’s proposed framework for the updated definition of “healthy” focuses on ensuring that foods labeled as healthy can qualify to bear the title by helping consumers to build a diet consistent with current dietary recommendations. Continue reading ›

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Sex trafficking requires more than one person to be involved in the process. So it should come as no surprise that the allegations against Jeffrey Epstein for sex trafficking didn’t stop with Epstein. His wife, Ghislaine Maxwell, was also found guilty of child sex trafficking and other crimes in connection with the abuse she and her husband committed on an ongoing basis.

Epstein and Maxwell were both very well-connected people, so it’s no wonder that people have speculated as to who knew about the sex trafficking before Epstein was arrested and the public became aware of his crimes. The horror and scope of the crimes has also led many to believe that it could not have been as secretive as many of those connected to Epstein have claimed. Since Epstein’s arrest, everyone from celebrities to politicians on both sides of the aisle have been accused of at least knowing about – if not directly participating in – Epstein’s sex trafficking. Continue reading ›

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Executors and trustees have a large amount of responsibility with respect to the assets they manage and to the beneficiaries for whose benefit they manage such assets. However, with a high degree of responsibility comes a high degree of accountability. That accountability comes in the form of the fiduciary duties that trustees and executors owe to the beneficiaries of an estate or trust. Chief among those fiduciary duties are the duties of loyalty, care, impartiality, and disclosure.

One way that executors and trustees can breach their fiduciary duties is by engaging in fraud. Executor or trustee fraud occurs when the executor or trustee uses deceit to misappropriate estate or trust assets for themselves or someone else not entitled to receive them. Claims of executor or trustee fraud can have serious consequences, including holding the executor or trustee personally liable for the losses suffered by the beneficiaries.

Examples of ways that an executor or trustee can commit fraud against the beneficiaries include:

  • Misappropriating assets of the estate or trust
  • Withholding distributions from beneficiaries
  • Distributing less than what a beneficiary is entitled
  • Hiding or omitting estate or trust assets
  • Failing to notify beneficiaries
  • Falsifying liabilities
  • Charging inflated fees
  • Selling assets for below market value to someone connected to the trustee or executor such as a friend or family member.

Continue reading ›

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