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OFFICE OF THE ATTORNEY GENERAL STATE OF ILLINOIS January 16, 2015 Lisa Madigan Michael J GENERAL. Jones, Director Ilinois Department of the Lottery 122 South 19” Floor Michigan Avenue Chicago, tlinois 60603 Re: Northstar Lottery Group LLC v. State of Illinois Department of the ‘ottery, No. 14 CC 2901 Dear Director Jones: | am writing to formally disapprove the proposed “Termination Agreement” ("TA") executed on or about December 9, 2014 which purports to resolve the above-referenced matter. Among the primary reasons for disapproving this proposed settlement are the following, 1 This Office was not consulted and did not participate in the negotiations and drafting of the proposed settlement. We first learned of it on December 11, 2014. This lawsuit isin its early stages and may have no merit. No discovery has been taken which could substantiate the financial terms of the proposed settlement. ‘The proposed settlement may result in obligating the State to pay more fees and expenses than the State has paid in prior fiscal years. The proposed settlement purports to authorize the Department to avoid timely compliance with the Ilingis Freedom of information Act by requiring the issuance of a binding opinion by the Public Access Counselor or the circuit court before Northstar’s Business Plan for fiscal year 2014 may be fully disclosed. (TA, pp. 13-14) The release language contained in the proposed settlement purports to be made on behalf of the entire State of Illinois, rather than the Department. (TA, p. 15). The proposed agreement purports to extend indemnification to Northstar in excess of the Department's statutory authority and in violation of the illinois Constitution of 1970. (TA, p 16) The proposed agreement contains a vague and unenforceable “non-disparagement” clause. (TA, p. 17) 00 South Second Steet, Springfield, tinois 62706 + (217) 782-1080 * Try: (877) 844-5461 » Fav: (217) 782-7046 0 West Randolph Set, Cheapo Ilaois 6060] + (312) 814-3000 + TTY: ($00) 9663013 + Fax: (312) 814-3806 versity Avenue, Suite 102, Carbondale, Ilinois 62501 + (618) 5296400 » TFY-(877) 675-9339 + Fax (618) 529.6416 Michael J. Jones January 16, 2015 Page 2 8. The proposed agreement seeks to limit lawsuits filed on behalf of the State and against Northstar to the Court of Claims, to the exclusion of the circuit court. (TA, p. 18). For these reasons, the proposed "Termination Agreement” is hereby disapproved. This Office plans to continue its vigorous defense of this matter.