Chicago law firms' tiff escalates to litigation

Two Chicago law firms are taking each other on after litigation boutique Johnson & Bell sued Edelson, a specialist in privacy and technology class actions for defamation, after claims it had inadequate protection against cyber attacks.

Demetrio Mascarenas

The move follows on from a federal case Edelson brought against Johnson & Bell last year that alleged Johnson & Bell relied on outdated technology to protect clients' confidential data, leaving it vulnerable to a cyber security breach. However, in a new complaint almost 100-strong lawyer firm Johnson & Bell with clients such as Volkswagen, Target and Walgreens stated that the claims in Edelson's initial suit were ‘completely false’.

More claims

But, it does not stop there; in addition to the defamation claim, the lawsuit accuses Edelson and its founder, Jay Edelson, of manipulating the legal system to drag the initial lawsuit from arbitration to federal court, in efforts to use the threat of negative publicity to press for a better settlement. The company is seeking more than $1 million in compensatory damages, plus punitive damages.

Attack

Johnson & Bell attorney Joseph Marconi writes in the complaint that Edelson's practice ‘largely consists of nothing more than preying upon unsuspecting businesses, conjuring up nonexistent issues, and then attempting to extort settlements that benefit no one but themselves through payments for their nuisance lawsuits.’ Jay Edelson used Twitter to direct the public to the cyber security lawsuit, then spoke to news outlets about the allegations it contained, according to Johnson & Bell's complaint. However, commentators have suggested there is nothing litigious about such actions.

'Silly'

However, Mr Edelson has been reported has calling Johnson & Bell's lawsuit ‘silly’ and merely a delaying tactic. As for the lawsuit that first started the dustup, US Judge John Darah of the Northern District of Illinois ruled in February that Edelson's clients must pursue their claims in arbitration as individuals, not as a class action. Mr Edelson is set to appeal the case.

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