RTA, et al. v. City of Kankakee, et al. (Circuit Court of Cook County, Illinois)

Eimer Stahl represents a city located south of Chicago in three consolidated cases brought against it by the City of Chicago, Cook County and the Regional Transportation Authority.  In each of the cases, the plaintiffs allege that certain tax rebate agreements between the city and various internet retailers and/or private consulting firms resulted in diversion of sales tax revenue away from the plaintiffs’ jurisdictions in violation of Illinois law.  A second Illinois municipality and three private consulting firms have also been named as defendants in the litigation, and over 70 third-party retailers, including some of the nation’s largest companies, have recently been joined and respondents in discovery and potential third parties.  To date, defendants have prevailed, in part, on three separate motions to dismiss, leading plaintiffs to fundamentally modify their claims and theories of recovery.