Corporate & Commercial

Illinois Freedom to Work Act 
Illinois Employers who want to protect their business and trade secrets by using restrictive employment contracts will find new hoops to jump through.   The enforcement of non-compete and non-solicit agreements, designed to erect roadblocks to prevent former employees from gaining an unfair advantage due to their proprietary knowledge of your business or relationships with your customers, has always been tricky.  But a recent law will make it more complicated.
An amendment to the Illinois Freedom to Work Act that will take effect on January 1, 2022, will create new hurdles for business owners hoping to
Continue Reading You Might Need to Rework Your Non-Competes

Whether it’s a corporation, company, limited liability entity, limited partnership, partnership or business trust, business owners are encouraged to form and use some type of business entity to limit their personal liability exposure, creating a firewall to prevent personally responsible for their business’ debts. Some of the events that enable a business’ creditor to breach this protection include:

  • Disregarding the Entity. If you fail to honor the integrity of the entity, creditors can disregard it and reach your personal assets.
  • Fraud. If the entity is a sham, used to avoid creditors or engages in illegal or improper conduct, the entity

Continue Reading Guaranties, Non-Recourse Debt and Limited Liability

Dispensary Financial Models
They let you cool off.

Financial Planning For a Dispensary
Financial models for a dispensary detail the cash flows of the business based on either assumptions or market data from your existing operations. Financial models are often required for your dispensary application. if you do not have enough liquidity to open your dispensary, financial models are required to get investors interested in the business opportunity that dispensaries offer.  In this article, we help you understand the dispensary business, potential competition in the current market scenario, and your end customers. We will assist you in developing an exhaustive
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In a class-action filed against Champion Petfoods alleging that the pet food company misrepresented the quality of its dog food and ingredients, the Seventh Circuit recently affirmed a grant of summary judgment in favor of Champion. In doing so, the Court reiterated to future litigants that “summary judgment is the proverbial put up or shut up moment in a lawsuit.” The lesson of the case for class-action plaintiffs is that evidence concerning the merits of the plaintiff’s case is just as important as evidence concerning class certification.
According to the plaintiff in the case, Champion advertised on its packaging that
Continue Reading Seventh Circuit Affirms Summary Judgment in Class-Action Suit Finding Plaintiff’s Own Testimony Insufficient Evidence to Support Claims

Illinois Cannabis Lottery – How to calculate the odds of winning multiple licenses.

Illinois Cannabis Lottery – How to calculate the odds of winning multiple licenses.
Starting 2020, Illinois became the 11th state to legalize recreational cannabis, letting adults 21 years or older buy cannabis from medical dispensaries while applicants prepared their applications to obtain an adult-use cannabis license.
In this sense, the state established a system in which qualified applicants would participate in a lottery, which was supposed to be a measure to equalize the chances and distribute the license in a fair manner. Under this system, high scoring
Continue Reading Illinois Cannabis Lottery – How to calculate the odds of winning multiple licenses.

Wills Can Be Signed Electronically
Prior to the COVID-19 pandemic, wills needed to be signed in person and witnesses (including notaries) needed to be on hand to see the will creator’s actually sign the will.
When the pandemic got underway, Illinois Governor Pritzker signed an Emergency Order declaring that for health and safety related reasons, wills could be signed electronically and that notaries public and other witnesses could view the signing from afar, provided they had a dependable audio and video connection.
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Continue Reading Electronic Will Signing, Remote Witnessing Made Permanently Available

The federal government has increased its efforts to curtail the abuse of restrictive covenants such as non-compete agreements, non-solicitation agreements, and no-poaching agreements. In July of this year, President Biden signed the Executive Order on Promoting Competition in the American Economy, which encourages the Federal Trade Commission (FTC) to make use of its statutory rulemaking authority “to curtail the unfair use of non-compete clauses and other clauses or agreements that may unfairly limit worker mobility.”
Federal agencies have already been utilizing antitrust and unfair competition laws to combat the abusive use of restrictive covenants. The Department of
Continue Reading President Biden’s Executive Order Encourages Federal Agencies to Increase Crackdown on Use of Non-compete Agreements

The U.S. Court of Appeals for the Seventh Circuit recently affirmed the imposition of a preliminary injunction obtained by Illinois-based medical device maker, Life Spine Inc., against a former business partner who allegedly misappropriated Life Spine’s trade secrets and gave them to its parent company, a competitor of Life Spine. The outcome affirms that injunctive relief is available to plaintiffs when irreparable harm is plausibly alleged, but also highlights that a company need not personally use the trade secrets to be found liable under the Defend Trade Secrets Act (DTSA), 18 U.S.C. §1836 et seq., and the Illinois Trade
Continue Reading Seventh Circuit Upholds Preliminary Injunction in Trade Secret Misappropriation Suit

In AIX Specialty Ins. Co. v. BigLimo, Inc., No. 3:21-cv-08, 2021 WL 2708902 (S.D. Ohio June 30, 2021) the United States District Court for the Southern District of Ohio concluded an insured nightclub’s unauthorized use of the pictures of two models in Facebook advertisements potentially qualified as “implied defamation” and “personal and advertising injury.” The court held that an intellectual property exclusion barred coverage that could exist for the pled claims of invasion of privacy by appropriation and violations of the Ohio Deceptive Trade Practices Act and Lanham Act, but held that the unauthorized use of the plaintiffs’ pictures potentially constituted an
Continue Reading Ohio Court: Use of Actresses’ Images Potentially Alleges Implied Defamation Claim Covered As “Personal And Advertising Injury”

Cannabis Licenses and Due Process Protection

Cannabis Licenses and Due Process Protection
A cannabis license is a legal document that allows the licensee to engage in business in the legal cannabis industry of the state for which the license was granted.
Nowadays, such licenses are a highly valued commodity, with application fees costing tens of thousands of dollars, and in some cases, being able to sell them for millions of dollars.
In this sense, it is important to make a question about the type of rights that people have over these licenses. Specifically, the aim of this post is
Continue Reading Cannabis Licenses and Due Process Protection

The Illinois Wage Payment Act was recently amended, imposing more drastic remedies against employers that do not timely pay employee wages and benefits both during and after employment. Employers who withhold any compensation, vacation/comp time or other benefits from terminated employees past the next payroll date may be subject to penalties including 5% monthly interest, attorney’s fees and costs. As the Illinois Department of Employment Security may also enforce these requirements, former employees may not even have to hire an attorney.
Employers in Illinois are subject to a web of federal, state and local laws, rules, regulations and ordinances impacting
Continue Reading Warning to Employers

It is not at all uncommon for a company to require individuals to agree to its Terms of Use when they sign up for an online service or when creating an account on a website or mobile app. It is also not uncommon for that service, website, or app to incorporate technology from multiple different providers. Such was the case in a case recently decided by the federal Seventh Circuit Court of Appeals. In its opinion, the Seventh Circuit rebuffed arguments by a technology company that it should be entitled to enforce certain arbitration provisions in a user agreement between
Continue Reading Seventh Circuit Rebuffs Software Company’s Attempt to Enforce Arbitration Agreement in Third Party User Agreement

cash flow statement

Need Help to understand your “Cash Flow Statement”? Then this is the right place for you!
The hasty growth and dynamic nature of the cannabis industry have culminated in barbarian and hyper-inflated business valuations, making it immensely tough for companies to derive in on a fair valuation as they follow to amass in the up-and-coming field. 
What can cannabis startup companies do to offset overinflated valuations? The best way is to have a better understanding of what their investors are aiming for when they originally evaluate a company for an upcoming potential merger and latest acquisition deal.
Continue Reading How to Build Cash Flow Statement for Your Cannabis Business

As we previously wrote about, this May the Illinois legislature passed a major bill that significantly alters how and when employers can use restrictive covenants, such as non-compete and non-solicitation agreements, with Illinois employees. As expected, Governor JB Pritzker signed the bill into law. It will go into effect January 1, 2022, and will only apply to agreements entered into after that date.
The new law amends the Illinois Freedom to Work Act and serves both to codify existing requirements under Illinois case law but also to impose new restrictions on Illinois employers as to when, with whom,
Continue Reading Governor Pritzker Signs New Law Changing the Game on Non-Compete Agreements

Amazon is facing a class-action lawsuit filed in the Madison County Circuit Court alleging that Amazon’s Alexa violates the Illinois Biometric Information Privacy Act (BIPA). In setting out its case against Amazon, the Complaint quotes an interview with former Amazon senior editor James Marcus in which he said that “It was made clear from the beginning that data collection was also one of Amazon’s businesses. All customer behavior that flowed through the site was recorded and tracked. And that itself was a valuable commodity.”
The Complaint details the near ubiquity of Amazon’s voice-based virtual assistant Alexa by alleging that Alexa
Continue Reading Class-Action Lawsuit Alleges that Amazon’s Alexa Violates the Illinois BIPA

When you’re a politician, your career is made or broken on your reputation. Donald Trump has been sued for defamation several times, with varying rates of success. Now his son, Donald Trump, Jr., is also being sued for defamation over allegations he made concerning another Republican candidate.
Don Blankenship was a Republican candidate for Senate in West Virginia in 2018, trying to unseat the incumbent, Joe Manchin III, who’s a Democrat. Trump and his allies opposed Blankenship in the primary, and their smear campaign included allegations that he’s a felon.
The allegations refer to an explosion at a mine run
Continue Reading Defamation Lawsuit Against Trump Jr. Allowed to Proceed