CHICAGO, March 8, 2017 /PRNewswire/ -- Whistleblower attorneys Stephen B. Diamond, Tony Kim and Matthew Burns of Chicago's Stephen B. Diamond, P.C. announce the $978,000 settlement of a qui tam lawsuit against Stride Rite subsidiaries SR/Ecom, Inc., SR/Ecom, LLC, Saucony/Ecom, Inc., SRCG/Ecom, Inc., STS/Ecom, Inc. and Robeez Logistics, Inc. in State of Illinois ex rel. Stephen B. Diamond, P.C. v. SR/Ecom, Inc., et al., No. 2013 L 13198 (Cook County). The settlement resolves allegations that Defendants violated the Illinois False Claims Act by failing to collect and remit Illinois use tax on Internet sales to Illinois customers.
Under the settlement, Defendants paid $978,000, treble the $326,000 in taxes they failed to collect during the period October 9, 2012 through May 31, 2014. This action followed Relator Stephen B. Diamond, P.C.'s investigation, which revealed Defendants sold merchandise through the Internet to Illinois customers but failed to collect any tax. Stephen B. Diamond, P.C. was the whistleblower.
Attorneys at Stephen B. Diamond, P.C. filed the lawsuit under seal in 2013 and represented the firm throughout the litigation. The Office of the Illinois Attorney General investigated Relator's claims, declined to intervene in the action and authorized Stephen B. Diamond, P.C. to prosecute the action on behalf of the State of Illinois.
The Court approved the settlement in October 2016. Defendants refused to adhere to the settlement, prompting Relator to move to enforce the settlement in December 2016. The Court granted Relator's motion in February 2017.
The State agreed that whistleblower Stephen B. Diamond, P.C. would receive $283,000 (29%) as Relator's statutory share of the proceeds. The Court also granted Relator's petition for attorneys' fees, expenses and costs pursuant to the False Claims Act.
For additional information, contact Tony Kim or Matthew Burns at Stephen B. Diamond, P.C. at (312) 939-6280.
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SOURCE Stephen B. Diamond, P.C.