From violating the terms of a contract to allegations of wrongful termination or sexual harassment, businesses may find themselves in court for a myriad of reasons. In Chicago, and across the country, all types of businesses can be virtually destroyed by these accusations. Whether a business is large or small, litigation can lead to costly fees, a damaged reputation in the community and other challenges that can spell disaster. Sometimes, lawsuits even force businesses to shut down.
A telecommunications company is facing a lawsuit in Illinois that was recently filed by the state. According to the lawsuit, the telecom firm lied about meeting the state’s minority-owned business demands when farming out work. The company was the target of a similar suit in 2015, although it was ultimately dismissed. A spokesperson for the company believes that this lawsuit will also be thrown out.
According to the state, a $144 million contract stipulated that the telecommunications company was required to offer work to minority-owned businesses when hiring subcontractors. The company is accused of breaking the Illinois False Claims Act by lying about the subcontractors that were hired. The state is asking for the telecom company to pay a civil penalty, cover damages and send payments back.
Unfortunately, some businesses have dealt with false claims of wrongdoing, while others have experienced setbacks over allegations that were exaggerated. When a business is facing legal action, it is important for the details of the case to be carefully examined. For some business owners, speaking to an attorney who has considerable experience handling these cases could be very beneficial.
Source: Chicago Tribune, “Illinois sues AT&T over minority contract,” Becky Yerak, Nov. 11, 2016