A business owner who had served as president of a trade association filed a lawsuit alleging slander per se and libel per se for statements made to members of that association and others. She named a former client and her successor as association president, among others, as defendants. After the court granted the defendants’ motion to dismiss, an Illinois appellate court affirmed the dismissal. Coghlan, et al v. Beck, et al, 984 N.E.2d 132 (Ill. App. 2013).

The plaintiff, Angelika Coghlan, was the managing partner of an information technology (IT) company, Catwalk Consulting, Inc. She served as the president of the Chicago chapter of the National Association of Women Business Owners (NAWBO-Chicago) from July 2008 until June 2010. In January 2010, Rebecca Busch, CEO of Medical Business Associates, Inc. (MBA), submitted a request for IT services to NAWBO-Chicago’s member listserv. Coghlan claimed that she contacted Busch directly about the request, then posted the request to the listserv, where all members could see it. Coghlan and Bush entered into an agreement for services, and Catwalk provided IT services to MBA for over a year, billing it more than $150,000. MBA notified Catwalk that it was terminating their contract in March 2011.

Valerie Beck succeeded Coghlan as NAWBO-Chicago president in July 2010, and Coghlan stayed on as a member of the board of directors. Beck prepared a written statement for the board’s April 2011 meeting making various claims against Coghlan. The statement called Coghlan a “corrupt Director,” accusing her of intercepting MBA’s listserv posting “for her own benefit,” and alleging other wrongdoing. Id. at 139. That month, Busch sent a letter to IBM’s Global Financing Division, which had financed the Catwalk contract, alleging that Catwalk never delivered. Id. at 140.

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Mars Petcare defends itself after some former workers in Southeast Kansas file a class action lawsuit. Mars Petcare makes Pedigree and other pet foods sold at many major retailers.

A former employee at one of Mars Petcare’s manufacturing facilities in Galena, Kansas doesn’t want his identity released.

“Retaliation from the company,” says the former worker. “It’s huge. It’s going to be the biggest thing to hit this area. It’s going to be a corporate killer.”

Court documents filed in Jasper County, Missouri claim the pet food company should have known about the danger condition of phosphine gas levels, but failed to warn of that condition or remove it.

“It causes respiratory and intestinal damage,” says the former worker. “We don’t know how much. We know there was stuff coming in that was fumigated and was not listed as being fumigated that went straight into making pet food.”

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Our business attorneys and consumer lawyers have successfully protected businesses from false reviews online and represented consumers wrongly sued to stop them from posting negative reviews about businesses that commit fraud or mistreat their customers.

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Many of us have heard stories of people losing their jobs over things said or posted on Facebook. The way we communicate has changed dramatically with the invention and increased use of the internet and employers, employees, and the law are still struggling to catch up.

This blog has already discussed a case in which a sheriff fired six of his employees, allegedly for clicking the “Like” button on the Facebook page of his political opponent. One of those workers, Daniel Ray Carter, filed a lawsuit against B. J. Roberts, the sheriff who fired him. The lawsuit alleged that Carter’s First Amendment rights had been violated and it was filed on behalf of Carter and the five other employees who were fired, allegedly for the same reason. The lawsuit sought compensation for lost back pay and front pay or for a reinstatement in their former positions.

Roberts, after his successful 2009 campaign for sheriff’s office, failed to reinstate six of his employees, all of whom had expressed support for his opponent. Roberts claimed he let some of the workers go because he wanted to replace them with sworn deputies. Others, he said, he fired because of poor performance and because he believed that their actions “hindered the harmony and efficiency of the office.” Despite these allegations, the employees he claims to have fired for poor performance both had consistent evaluations of “above average” or “outstanding” and neither of their direct supervisors or second-level supervisors had ever indicated a performance problem.

U. S. District Judge Raymond Jackson in Norfolk ruled in April 2012 that the “Like” button on Facebook is not equivalent to a statement, and is therefore not protected by the First Amendment. He dismissed the case and the plaintiffs appealed.

In his ruling, Jackson admitted that there have been other courts which have ruled that Facebook posts are constitutionally protected speech. However, he argues that, in those cases the speech in question involved “actual statements” rather than simply clicking a button.
Jackson’s ruling was criticized by constitutional lawyers who argued that other speech conducted online, such as uploading a video, or donating money to a campaign, is protected under the First Amendment, despite the fact that they involve nothing more than the click of a button.

The three-judge 4th Circuit federal appeals court disagreed with Jackson’s decision, ruling instead that Carter’s use of the “Like” button was both “pure speech” and symbolic expression. U.S. Circuit Judge William Traxler compared clicking the button to posting a political campaign sign in a front yard, which is protected under the First Amendment. “On the most basic level,” said Traxler, “clicking on the ‘like’ button both literally causes to be published the statement that the User ‘likes’ something with is itself a substantial statement. That a user may use a single mouse click to produce that message that he likes the page instead of typing the same message with several individual key strokes is of no constitutional significance.”

The appeals court unanimously ruled that clicking Facebook’s “Like” button was protected speech. It therefore partially reversed the lower court’s ruling and reinstated the claims of Carter and two of the other employees who sued. It determined, however, that the three other employees had not provided sufficient evidence that their support of Roberts’s opponent was the reason they were not reinstated.

The court also ruled that Roberts is immune from any monetary judgment. As an “arm of the State” he is “immune from suit for claims against him in that capacity”. He is not immune, however, from the plaintiffs’ claims for reinstatement.

You can view the entire appellate decision here.

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For many of us, our credit report is arguably the most important aspect of our financial lives. It can affect whether or not we receive a loan to buy a house or start a new business. It can even affect whether or not a potential employer decides to hire us. There are numerous companies in existence to provide us with access to our credit score so we can keep track of and control this important record. It is no wonder, therefore, that a person would take it very seriously if they found out that there were mistakes on their credit report.

That is exactly what happened to Julie Miller of Marion County, Oregon. Miller claims she made at least eight attempts between 2009 and 2011 to reach out to Equifax to correct errors she found on her credit report. Miller says she had done the same with two other credit reporting agencies and they had had no problems responding to her requests. For some reason though, Equifax allegedly refused to budge on the issue.

Miller’s complaint was far more serious than a mere misspelled name or an incorrect address. Her credit report allegedly contained credit accounts which she says she never opened, as well as debt collection attempts and a Social Security number which did not belong to her. Just one of these errors by itself would be enough to cause severe damage to anyone’s credit score, let alone all of them at once.

Miller’s attorney, Justin Baxter, told Oregon Live that these mistakes on her credit report resulted in “damage to her reputation, a breach of privacy and the lost opportunity to seek credit”. Baxter also said that Miller has a brother who is disabled and unable to get credit on his own. Because of these persistent errors on her credit report, Miller was unable to help him.
After spending years fruitlessly trying to get Equifax to correct the information on her credit report, Miller has finally received justice at the hands of the law. A long battle in federal court has recently resulted in an order for Equifax to pay Miller $18 million in damages. This is one of the largest awards in history against a credit agency.

While the court’s decision is undoubtedly a huge victory for Miller, the lawsuit provides an example of the very disjointed world of credit reporting in our country today. A recent report by the Federal Trade Commission found errors on the credit reports of as many as one in five consumers. Only 20% of people who disputed errors ever saw them corrected.

The frightening aspect of these allegations against Equifax is that Miller did everything she was supposed to do. Once she was aware of the problems on her credit report, she contacted all three credit bureaus to ask for the necessary corrections. She also asked them for copies of her credit report.

Obviously, the goal behind these kinds of lawsuits is not only the award in damages for the plaintiffs, but to encourage credit bureaus to take complaints from customers seriously. Whether or not that goal has been achieved here has yet to be determined. At the moment, Equifax is preparing to appeal the verdict.

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A wise philanthropist is a cautious philanthropist. Many people already know to check a few reputable websites before deciding whether or not to donate money to a particular organization. However, some charities are better than others at making sure that the majority of the funds they receive truly benefit the people and causes they are meant to help. If a charity fails to properly appropriate funds from the government, the repercussions can be particularly expensive.

A common cause for charity is cancer treatment and research. A recent whistleblower lawsuit has revealed that even the government must be mindful of who it donates money to. The lawsuit which involves allegations of misappropriation of funds for cancer research has been settled for $2.93 million. The defendant was Northwestern University and the funds provided by the government were allegedly misused by Dr. Charles Bennett. Bennett, worked for Northwestern University as a principal researcher in studies that sought to better understand rare diseases and to develop systems to better identify when cancer drugs have bad side effects. He reaped wide acclaim for his work in this research but, as he did so, he was also allegedly incurring high personal expenses and using cancer research funds to finance them.

Bennett and his wife allegedly took trips for pleasure and then billed the flight, hotel, and meal costs to the National Institutes for Health, claiming that it was all part of his cancer-fighting work. Bennett also allegedly submitted phony bills for his work from 2003 to 2010 while he was working on numerous grants that provided more than $8 million for research. Some of the travel allegedly occurred on a “near weekly basis, and in some cases incurred expenses that were highly excessive” according to the lawsuit. Moreover, Bennett allegedly used whatever grant money was left over at the end of funding periods to fund his salary.

The lawsuit was brought by Melissa Theis under seal as a whistleblower lawsuit in 2009. Theis began working as a temp at Northwestern’s Feinberg School of Medicine in November 2007 as a purchasing coordinator before she was hired full time by the university. Theis said she first suspected something when she noticed red flags in the invoices and reimbursement requests “almost immediately” after she began working there.

In September 2008, Theis says she discussed her concerns with her supervisor and an accounting services unit at the University. However, according to the lawsuit, “Northwestern refused to seriously address the issues she had brought.” Theis quit her position with the University in 2008 and filed her whistleblower lawsuit in 2009. After she filed her lawsuit, federal investigators from the U.S. Department of Health and Human Services, the FBI, the NIH, and the U.S. Attorney’s office conducted an investigation into Theis’s allegations.

The lawsuit alleged that the University did not have sufficient controls in place to detect or prevent inappropriate spending.

The University has not admitted to any wrongdoing as part of the settlement.
Although the University has agreed to settle with the government, there are still claims against Bennett and the head of the University’s Lurie Comprehensive Cancer Center, Dr. Steven Rosen, which have yet to be settled. The whistleblower lawsuit is a civil proceeding to obtain a refund of government monies allegedly misappropriated. The whistleblower receives a percentage of the recovery or settlement.

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Lance Armstrong caused an international sensation when he finally admitted to using performance enhancing drugs while competing in the Tour de France. Floyd Landis, Armstrong’s ex-teammate, who has also confessed to doping, filed a whistleblower lawsuit in Washington D.C. against Armstrong in 2010. The lawsuit alleges that Armstrong defrauded the American government, which sponsored Armstrong in his races. Now the U.S. Justice Department has joined the legal battle.

Landis filed his case under the False Claims Act which givens private citizens a financial incentive to file suit on the government’s behalf against individuals and entities who they know are cheating the government. Whistleblower cases are first filed “under seal” which means that they are not initially announced to the public. This gives the government an opportunity to investigate the allegations before deciding whether or not to join the case. The Justice Department has recently announced that it is intervening in the lawsuit against Armstrong and other named defendants. This has greatly increased Landis’s chances of success because the government normally only joins lawsuits that it thinks it can win.

Violators of the False Claims Act are liable for up to three times the damages plus an additional $5,500 to $11,000 for each false claim. U.S. Attorney Ronald C. Machen Jr. has said that Armstrong and his associates “took more than $30 millions from the U.S. Postal Service based on their contractual promise to play fair and abide by the rules.” The amount the government might be able to recover in a court of law amounts to between $90 million and $100 million. If they win, Landis, as the plaintiff who first filed the case, can collect up to one-third of that money.

According to media reports, Armstrong offered $5 million to settle the case, but the government wanted at least $10 million. News reports have also said that Armstrong wants immunity from criminal charges as part of his settlement with the U.S. Postal Service. The government does not appear to have offered that as part of the deal.

However, it is not uncommon for settlement negotiations to restart, even as the two teams are preparing for trial. Most civil cases are resolved before trial and the government’s involvement in the case will no doubt put pressure on the defendants to settle.

Armstrong’s attorneys have argued that the U.S. Postal Service made more money off of its sponsorship of Armstrong than it ever paid to Armstrong and his team. However, this is irrelevant to the matter of whether or not Armstrong broke the law. If Armstrong and his teammates received $30 million from the U.S. government by promising to follow the anti-doping rules and broke that promise, then they are liable for having broken their word, regardless of how much money the U.S. postal service gained. Machen’s lawsuit also alleges that the U.S. Postal Service continues to suffer by being associated with Armstrong and his team. The U.S. government can use this to show that they have suffered much more in damages than the initial $30 million paid to Armstrong and his team.

Armstrong is arguing that the U.S. Postal Service should have known that he was taking performance enhancing drugs because of the allegations at the time and an investigation conducted by French police. However, Armstrong, the teams lead rider, was vehemently denying the allegations all the time that he was under investigation.

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