public disclosure bar in Illinois

2020The court reasoned, in part, the school districts have no authority to oppose the dismissal of a qui tam action under the Act, making their “resolutions” irrelevant. ¶ 64 Relators incorrectly relied upon the First District decision in Lyons Township, 2017 IL App (1st) 161574 , to argue the allegedly defrauded entity may be “the State” within the meaning of the statute and thereby has the authority to oppose dismissal of a claim under the public disclosure bar.

2019Kielczynski v. Village of Indian Head Park, 2017 IL App (1st) 161574, ¶ 11 . ¶ 31 The public disclosure bar is intended to preclude a relator’s action when the alleged fraud was publicly disclosed in a listed source, unless the relator was an original source of certain information underlying the action.

2017Patrick, 2012 IL 113148, ¶ 31 . &44 The trial court granted Indian Head's motion to dismiss based upon the public disclosure bar in the Illinois False Claims Act (740 ILCS 175/4(e)(4) (West 2014)) and section 2-106 of the Illinois Tort Immunity Act (745 ILCS 10/2-106 (West 2014)).

2017Patrick, 2012 IL 113148, ¶ 31 . 16 1-16-1574 &46 The trial court granted Indian Head's motion to dismiss based upon the public disclosure bar in the Illinois False Claims Act (740 ILCS 175/4(e)(4) (West 2014)) and section 2-106 of the Illinois Tort Immunity Act (745 ILCS 10/2-106 (West 2014)).

2017Kraxberger, 756 F.3d at 1078-79 . 19

2017Kraxberger, 756 F.3d at 1078-79 . 20

2024Dismissal is not warranted under the public disclosure bar if “the action is brought by the Attorney General or the person bringing the action is an original source of the information.” Id.

2020“No one but the Attorney General may intervene in the action, and the Attorney General retains the right to intervene in the lawsuit at any time.” (Emphasis added.) Scachitti, 215 Ill. 2d at 511 . ¶ 66 Finally, relators argue that even if their claim falls under the public disclosure bar and they do not qualify as original sources, their claim should not be dismissed because their suit is not “parasitic” in nature.

2000App. 3d 573 , 723 N.E.2d 1192 (2000), appeal allowed, 188 Ill. 2d 565 , 729 N.E.2d 496 (2000), the court agreed with Miller, stating, “We too hold that the public disclosure requirement may be satisfied by proof that the plaintiff has a special relationship with the ‘public’ to whom the information is disclosed.” Johnson, 311 Ill.

2000App. 3d 573 , 723 N.E.2d 1192 (2000), appeal allowed, 188 Ill. 2d 565 , 729 N.E.2d 496 (2000), the court agreed with Miller, stating, “We too hold that the public disclosure requirement may be satisfied by proof that the plaintiff has a special relationship with the ‘public’ to whom the information is disclosed.” Johnson, 311 Ill.

2024Summary judgment is appropriate when the pleadings, depositions, admissions, and affidavits, viewed in a light most favorable to the nonmovant, fail to establish that a genuine issue of material fact exists, thereby entitling the moving party to judgment as a matter of law. 735 ILCS 5/2-1005 (West 2022); Fox v. Seiden, 2016 IL App (1st) 141984, ¶ 12 .

2020Bowles v. Owens-Illinois, Inc., 2013 IL App (4th) 121072, ¶ 19 , 996 N.E.2d 1267 . ¶ 31 A. Public Disclosure ¶ 32 “The public-disclosure bar aims ‘to strike a balance between encouraging private persons to root out fraud and stifling parasitic lawsuits’ in which a relator, instead of plowing new ground, attempts to free-ride by merely reiterating previously disclosed fraudulent acts.” United States ex rel.

2020Quinn, 14 F.3d at 654 .

2020King v. Hillcrest Health Center, Inc., 264 F.3d 1271, 1281 (quoting Ackley, 76 F. Supp. 2d at 668 .) ¶ 58 There is no specific time frame requirement when relators must voluntarily disclose the information to the state; however, there must be enough time for the state to engage in its own investigation of the alleged fraud.

2020The term “in the course of a civil, criminal, or administrative hearing” under the public disclosure bar “should be interpreted broadly to include allegations and information - 13 - disclosed in connection with civil, criminal, or administrative litigation.” (Internal quotation marks omitted.) Prudential Insurance, 944 F.2d at 1156 . ¶ 33 Relators acknowledge in their brief “some, but not all of the documents relied on by [them] to state a claim were obtained by [FOIA] requests to the school districts.” They also agree they “obtained some documents from the Chatham district in [Open Meetings a

2020Accordingly, because we interpret this provision of the Public Disclosure Act “broadly to include allegations and information disclosed in connection with civil, criminal, or administrative litigation” (Prudential Insurance, 944 F.2d at 1156 ), even if this information materially added to information publicly disclosed, relators cannot avoid this section of the public disclosure bar. ¶ 56 From a procedural standpoint even if relators were an “original source” they were required to “voluntarily provide[ ] the information to the State before filing an action under this Section.” 740 ILCS 175/4 (

2020Bowles v. Owens-Illinois, Inc., 2013 IL App (4th) 121072, ¶ 19 , 996 N.E.2d 1267 . ¶ 31 A. Public Disclosure ¶ 32 “The public-disclosure bar aims ‘to strike a balance between encouraging private persons to root out fraud and stifling parasitic lawsuits’ in which a relator, instead of plowing new ground, attempts to free-ride by merely reiterating previously disclosed fraudulent acts.” United States ex rel.

2020Although our circuit courts are considered courts of general jurisdiction, the four-step test in Lyons Township still serves to determine whether the “public disclosure bar” may apply under the Illinois False Claims Act. ¶ 15 “To trigger the public-disclosure bar of [section (e)(4)(A) of the Act], it is not enough that allegations of wrongdoing have been publicly disclosed; the relator’s allegations must also be ‘based upon’ the public disclosure.” Glaser, 570 F.3d at 914 .

2020Prior to Glaser, the Seventh Circuit held such suits were “based upon” publicly disclosed information when they “ ‘depend[ed] essentially upon publicly disclosed information and [were] actually derived from such information.’ ” Glaser 570 F.3d at 914 (quoting United States v. Bank of Farmington, 166 F.3d 853, 864 (7th Cir. 1999)).

2020Humphrey, 189 F. Supp. 2d at 867 ; see also Target Corp., 367 Ill.

2019Relators assert that the trial court erred in finding that their failure to plead an actual completed transaction demonstrating that Home Depot did not charge customers sales tax warranted dismissal under section 2-615. ¶ 39 The critical inquiry raised by a section 2-615 motion to dismiss “is whether the allegations of the complaint, when construed in a light most favorable to the plaintiff, are sufficient to state a cause of action upon which relief may be granted.” Bogenberger v. Pi Kappa Alpha Corp., 2018 IL 120951 , ¶ 23; Cochran v. Securitas Security Services USA, Inc., 2017 IL 121200 , ¶

2019Relators assert that the trial court erred in finding that their failure to plead an actual completed transaction demonstrating that Home Depot did not charge customers sales tax warranted dismissal under section 2-615. ¶ 39 The critical inquiry raised by a section 2-615 motion to dismiss “is whether the allegations of the complaint, when construed in a light most favorable to the plaintiff, are sufficient to state a cause of action upon which relief may be granted.” Bogenberger v. Pi Kappa Alpha Corp., 2018 IL 120951 , ¶ 23; Cochran v. Securitas Security Services USA, Inc., 2017 IL 121200 , ¶

2019Schad, Diamond & Shedden, P.C. v. National Business Furniture, LLC, 2016 IL App (1st) 150526, ¶ 32 . ¶ 30 Turning first to the applicability of the public disclosure bar, the Act provides that the “court shall dismiss an action or claim *** if substantially the same allegations or transactions as alleged in the action or claim were publicly disclosed: *** (iii) from the news media, unless the action is brought by the Attorney General or the person bringing the action is an original source of the information.” 740 ILCS 175/4(e)(4)(A) (West 2014).

2006Gear, 436 F.3d at 728 .