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
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versity Avenue, Suite 102, Carbondale, Ilinois 62501 + (618) 5296400 » TFY-(877) 675-9339 + Fax (618) 529.6416Michael 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.