|

Yes, the Illinois Attorney General can sue your company for consumer fraud (In re Tapper, 123 B.R. 594 (1991)), (People of State of Ill. ex rel. Hartigan v. Commonwealth Mortg. Corp. of America, 732 F.Supp. 885 (1990), (People of State of Ill. v. Life of Mid-America Ins. Co., 805 F.2d 763 (1986). The Attorney General can act under the Illinois Consumer Fraud and Deceptive Business Practices Act (ICFDBPA), and can take action when there is reason to believe that your company is engaging in, or about to engage in, any method, act, or practice declared unlawful under the ICFDBPA (People of State of Ill. v. Life of Mid-America Ins. Co., 805 F.2d 763 (1986)), (People ex rel. Devine v. Time Consumer Marketing, Inc., 336 Ill.App.3d 74 (2002)), (People ex rel. Madigan v. United Const. of America, Inc., 2012 IL App (1st) 120308 (2012)).

The Attorney General can file a lawsuit to halt deceptive practices without needing to demonstrate anyone has been directly harmed, a requirement necessary for a private plaintiff. B. Sanfield, Inc. v. Finlay Fine Jewelry Corp., 168 F.3d 967 (1999)), (Harris v. Kashi Sales, LLC, 609 F.Supp.3d 633 (2022)). Deceptive practices can include deceptive advertising or violations of the Illinois Consumer Fraud Act and the Illinois Uniform Deceptive Trade Practices Act (People of State of Ill. ex rel. Hartigan v. Commonwealth Mortg. Corp. of America, 732 F.Supp. 885 (1990)), (People ex rel. Devine v. Time Consumer Marketing, Inc., 336 Ill.App.3d 74 (2002)).

The Attorney General can file suit under the ICFDBPA when it appears your company has engaged in, is engaging in, or is about to engage in practices declared to be unlawful by the Act (815 ILCS 505/3), (815 ILCS 505/6.1). The Attorney General has the power to obtain and impose injunctions, and the ICFDBPA provides the Attorney General with the full authority to impose an injunction that can effectively tie up the company’s known assets. People of State of Ill. ex rel. Hartigan v. Peters, 871 F.2d 1336 (1989). They can even bring an action in the name of the People of the State against your company to restrain by preliminary or permanent injunction the use of such method, act, or practice (People ex rel. Devine v. Time Consumer Marketing, Inc., 336 Ill.App.3d 74 (2002), (815 ILCS 505/7).

However, a nonresident plaintiff can only sue under the ICFDBPA if the circumstances leading to the cause of action primarily and substantially occurred in Illinois. Irwin v. Jimmy John’s Franchise, LLC, 175 F.Supp.3d 1064 (2016). The company’s headquarters being located in Illinois is not a decisive factor as to whether a nonresident possesses standing to sue under the ICFDBPA. Irwin v. Jimmy John’s Franchise, LLC, 175 F.Supp.3d 1064 (2016).

It’s important to note that under the ICFDBPA, to state a claim, a plaintiff must show a deceptive or unfair act or promise by the defendant, the defendant’s intent that the plaintiff rely on the deceptive or unfair practice, and that the unfair or deceptive practice occurred during a course of conduct involving trade or commerce (Harris v. Kashi Sales, LLC, 609 F.Supp.3d 633 (2022)).

Continue reading ›

|

Hiring DiTommaso Lubin to defend your company in an Illinois Attorney General consumer fraud investigation could be strategically beneficial for several reasons:

  1. Focus on Consumer Law: DiTommaso Lubin likely has a comprehensive understanding of consumer law, particularly as it pertains to the regulations and practices within Illinois. This focus on consumer law can be critical in navigating the specifics of a consumer fraud investigation conducted by the state’s Attorney General.
  2. Experience with Regulatory Bodies: If the firm has experience dealing with regulatory bodies, including the Illinois Attorney General’s office, it can provide your company with an advantage. Such experience means the firm understands the procedures, expectations, and typical workflows of the office, which can lead to more effective communication and negotiation.
  3. Defensive Strategies: The firm can develop robust defensive strategies tailored to the specifics of your case. This can include challenging the validity of the investigation, negotiating for lesser penalties, or demonstrating compliance with consumer protection laws.
  4. Preventive Advice: Beyond just defense, DiTommaso Lubin can offer preventive advice to help your company avoid future legal pitfalls. This includes revising current business practices, improving compliance protocols, and training staff to adhere to state and federal consumer laws.
  5. Reputation Management: During an investigation by the Attorney General, maintaining a positive public image is crucial. A law firm experienced in handling such cases can help manage the public and media perception, which is vital for preserving customer trust and company reputation.
  6. Cost-Effective: While defending against a consumer fraud investigation can be expensive, a specialized firm like DiTommaso Lubin might offer more cost-effective solutions through efficient management of the case, potentially reducing long-term costs associated with prolonged legal battles or heavier penalties.
  7. Personalized Attention: Depending on the size and focus of the firm, your company might benefit from more personalized service, ensuring that your specific needs and concerns are addressed promptly and thoroughly.

Continue reading ›

|

In Illinois, a derivative lawsuit can be filed by an individual shareholder or a member of a limited liability company (LLC) to enforce a right that belongs to the corporation or the LLC (Silver v. Allard, 16 F.Supp.2d 966 (1998)), (Pistone v. Carl, Not Reported in N.E. Rptr. (2020). The aim of such a lawsuit is to protect the interests of the corporation or the LLC from the misconduct of its directors and managers (Silver v. Allard, 16 F.Supp.2d 966 (1998)).

There are certain prerequisites for filing a derivative lawsuit. Firstly, the shareholder or member must make a demand upon the board of directors to enforce a corporate right (Silver v. Allard, 16 F.Supp.2d 966 (1998)). However, this demand requirement can be excused in certain situations. For instance, if the shareholders can demonstrate that the directors were aware of the misconduct but consciously chose not to act, the demand can be excused. In such cases, the plaintiffs would effectively be arguing the futility of such a demand. It’s important to note, as per Illinois choice of law rules, that the pre-suit demand requirement is governed by the law of Delaware in the case of corporations incorporated there (Wells v. Reed, — N.E.3d —- (2024). Continue reading ›

|

Retaining DiTommaso Lubin for a breach of fiduciary duty lawsuit could be beneficial for several reasons:

  1. Focus on Business Litigation: DiTommaso Lubin has a focus on business litigation, which includes handling cases of breach of fiduciary duty. This specialization means they likely have a deep understanding of the laws and complexities involved in such cases.
  2. Experience: The firm boasts extensive experience in this area of law, which can be crucial for navigating the often complex legal issues that arise in breach of fiduciary duty cases. Experienced lawyers are more likely to understand the nuances of the law and how it applies to specific situations.
Continue reading ›

|

In Illinois, there are several defenses that can be utilized in response to a libel suit. One such defense is the doctrine of “innocent construction”, where a potentially defamatory statement is innocently construed, and therefore not actionable. Expressions of opinion are another type of defense, as they are not considered statements of fact and are therefore protected from defamation claims.

Another key defense to defamation in Illinois is the defense of truth. Under Illinois law, if the defendant can show the “substantial truth” of the alleged defamatory statement, this is considered a complete defense to defamation. The defendant need only show the truth of the “gist” or “sting” of the defamatory material.

Additionally, the establishment of a qualified privilege can also serve as a defense. If a qualified privilege is established, the communication becomes actionable only if the privilege was abused. The plaintiff must present evidence of a reckless act which shows disregard for the defamed party’s rights, such as failure to properly investigate the truth of the matter, limit the scope of the material, or send the material to only proper parties .

In some cases, the defendant can maintain a suit for defamation without proof of special damages only if the defamatory statement falls into one of four “per se” categories: commission of a crime; infection with a communicable disease leading to the infected person being shunned; malfeasance or misfeasance in the performance of office or job; and unfitness for their profession or trade.

Lastly, under Illinois statutory and constitutional provisions, when truth is published with good motives and for justifiable ends, it can be used as a defense to prosecution for criminal libel. However, both elements are necessary for the defense to prevail. Continue reading ›

|

Choosing DiTommaso Lubin to defend you in a libel case can be a strong option due to their extensive experience and strategic approach to defamation law. Here are some reasons based on their record and legal capabilities:

  1. Experienced Legal Team: DiTommaso Lubin has a dedicated team of attorneys with significant experience in defending and prosecuting defamation cases. This includes complex scenarios involving cyber defamation and First Amendment rights, ensuring that clients receive knowledgeable representation tailored to the nuances of each case​ (Chicago Business Litigation Lawyer Blog)​​ (Chicago Business Law Firm)​.
  2. Comprehensive Legal Strategies: They are well-versed in deploying a range of defamation defenses, such as the innocent construction rule, which can dismiss a complaint if the statements can be interpreted innocently, and understanding the nuances between statements of opinion and fact as they relate to defamation claims​ (Chicago Business Law Firm)​​ (Chicago Business Law Firm)​.
Continue reading ›

|

Yes, taking excessive compensation can indeed violate a managing member or majority shareholder’s fiduciary duties. Case law supports this assertion. In Fleming v. Louvers International, Inc., the court found that a majority shareholder violated his fiduciary duties by taking excessive compensation, depriving a minority shareholder of his rightful distributions. This conduct was seen as a breach of both his common-law fiduciary duty and his duty under section 12.56(a)(3) of the Act, and also constituted constructive fraud.

The case of Kovac v. Barron highlighted the defendant shareholder who had the corporations pay him and his wife millions in excessive compensation, which was then concealed by disguising the payments as “contract labor” on the corporations’ tax returns.

Similarly, in Halperin v. Halperin, it was held that the payment of excessive compensation and the concealment of the amount of compensation received by the officers were breaches of fiduciary duty. Concealing compensation amounts from shareholders could still constitute a breach of fiduciary duty, even if the compensation was not found to be excessive. Continue reading ›

|
Choosing DiTommaso Lubin for business litigation comes with several advantages, particularly due to their experience and client-focused approach. Here are some key reasons why they are a compelling choice:
  1. Experience Across Business Litigation Domains: DiTommaso Lubin handles a wide range of business litigation matters, including disputes related to shareholders, LLC members, and partnerships, as well as issues involving trade secret theft, copyright and trademark infringement, and non-compete agreements. They are also experienced in emergency injunctive relief and a variety of other complex litigation areas such as consumer fraud and employment disputes​ (Chicago Business Litigation Lawyer Blog)​.
  2. Dedicated Legal Team: The firm’s attorneys, including noted lawyers like Peter Lubin and Patrick Austermuehle, are recognized for their legal acumen. Both have received accolades such as “Super Lawyer” and “Rising Star,” underscoring their professional excellence​ (Chicago Business Litigation Lawyer Blog)​​ (Chicago Business Litigation Lawyer Blog)​.
Continue reading ›

|

In Illinois, the concept of LLC member or shareholder oppression is generally conceived as actions that are “illegal, oppressive, or fraudulent”. For shareholders of a corpo”ration that has no shares listed on a national securities exchange or regularly traded in a market maintained by one or more members of a national or affiliated securities association, the Illinois Business Corporation Act (IBCA) states that the Circuit Court may intervene if it is established that the directors or those in control of the corporation have acted, are acting, or will act in a manner that is illegal, oppressive, or fraudulent with respect to the petitioning shareholder.

In the context of LLC members, the Illinois Limited Liability Company Act (805 ILCS 180/35-1) provides for the dissolution of the company upon the application by a member or transferee of a distributional interest, upon entry of a judicial decree that the managers or those members in control of the company have acted or are acting in a manner that is oppressive and was, is, or will be directly harmful to the applican].

However, it’s important to note that in a manager-managed LLC, a member who is not also a manager does not violate a duty or obligation under the Act or under the operating agreement merely because the member’s conduct furthers the member’s own interest.

The specific conduct that courts have found to be oppressive varies. Some cases have found that conduct is oppressive if it is “arbitrary, overbearing and heavy-handed”. Other cases have found that even where corporate formalities are observed, the payment of a high amount of compensation to corporate officers, while refusing to pay dividends to benefit minority shareholders, can be considered oppressive conduct, depending on the corporation’s overall financial picture. Continue reading ›

|

In the complex and often contentious world of business, minority shareholders and LLC members can sometimes find themselves sidelined, oppressed, or unfairly treated. In such situations, securing legal representation that is not only skilled in business law but also deeply understands the nuances of minority shareholder and LLC member rights is critical. DiTommaso Lubin, a firm with a robust practice in Illinois, stands out as a prime choice for minority owners seeking justice and equitable treatment. Here’s why:

Extensive Experience in Business and Shareholder Law

DiTommaso Lubin has spent decades navigating the intricacies of business and shareholder litigation, making them seasoned veterans in the field. Their deep experience extends to handling cases of shareholder and LLC member oppression—a niche that requires a detailed understanding of both state laws and the delicate dynamics of business operations and fiduciary duty law. Their track record of successfully resolving disputes, both in and out of court, reassures potential clients of their capability and strategic expertise.

Continue reading ›
Contact Information
Chicago Office
19 S LaSalle St #702
Chicago, IL 60603
Phone: 630-333-0333
Mailing Address
17W220 22nd St #410
Oakbrook Terrace, IL 60181
Phone: 630-333-0333 Please direct all mail correspondence to our Oakbrook Terrace address office.
Highland Park Office
189 Whistler Rd
Highland Park, IL 60035
Phone: 630-710-4990
We accept the following credit cards
Credit Cards Accepted
We accept payment via Venmo at: @L-A-LAW
Phone: 603-333-0333
Visit our site: chicagobusinesslawfirm.com

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Please do not include any confidential or sensitive information in a contact form, text message, or voicemail. The contact form sends information by non-encrypted email, which is not secure. Submitting a contact form, sending a text message, making a phone call, or leaving a voicemail does not create an attorney-client relationship.

Copyright © 2025, DiTommaso Lubin, PC
JUSTIA Law Firm Blog Design