A prominent Chicago class action law firm has signed on to lead a class action by the Citizens Utility Board against electrical utility ComEd, for ComEd's role in an alleged bribery conspiracy with the political machine of Illinois House Speaker Michael Madigan.
On Jan. 5, attorneys with the firm of Edelson P.C., of Chicago, filed suit in Chicago federal court on behalf of the Citizens Utility Board, an organization that claims to be a watchdog fighting against utility rate hikes on behalf of Illinois consumers.
The CUB lawsuit asks the court to order ComEd to repay triple the hiked payments from its customers ComEd allegedly reaped from favorable legislation backed by Madigan, as a result of the alleged bribery scheme.
Jay Edelson of Edelson, PC
CUB’s complaint was filed after a federal judge granted the organization permission to intervene as additional plaintiffs in a class action that had been filed in July, after federal prosecutors criminally charged ComEd for its role in the alleged scheme.
As part of the criminal proceedings, ComEd agreed to a deal with the U.S. Department of Justice. Under that agreement, ComEd would pay $200 million and would cooperate with federal prosecutors as they continue to investigate the alleged Madigan pay-for-play bribery scheme.
The federal charges center on ComEd’s efforts to use patronage hiring and other bribes to gain Madigan’s crucial aid in steering legislation through the Illinois General Assembly. CUB and other plaintiffs have indicated those laws have allowed ComEd to charge their Illinois customers hundreds of millions, if not billions, of dollars more than the utility otherwise would have been permitted.
Members of Madigan’s inner circle and the former CEO of ComEd have also been indicted in connection with the alleged scheme.
Madigan has not been indicted. However, documents filed by prosecutors in court have referred to “Public Official A,” and identified that individual as the Speaker of the Illinois House of Representatives – an office held by Madigan for nearly all of the past four decades.
The charges have asserted ComEd’s efforts were aimed at placating and currying favor with “Public Official A.”
Madigan also serves as chairman of the Illinois Democratic Party.
At least 19 members of the Illinois Democratic Party have publicly announced their intent to oppose Madigan’s reelection as Speaker. Two Democratic state representatives have announced their intent to seek the Speaker’s gavel.
Madigan, however, has refused so far to step aside, and has received backing from key elements of the Democratic coalition, including the caucuses for Black and Hispanic members of the Illinois House, setting up a floor fight for control of the gavel in Springfield in coming days.
Several class action lawsuits, stemming from the alleged criminal conduct, were also filed against ComEd last year.
In the class action in which CUB has intervened, plaintiff Lawrence Gress directly attacks Madigan, in addition to ComEd, calling the Speaker a “racketeer” who conspired with ComEd.
“Madigan and his fellow-racketeers have used their power as public officials to line their own pockets by infiltrating and corrupting both public and private enterprises subject to his power and selling secret and unlawful indulgences to the highest bidder,” Gress’ federal complaint asserts.
Gress is represented in the case by attorney Michael I. Leonard, of Chicago.
The case is also proceeding along with a class action brought on behalf of a collection of ComEd commercial customers. They are represented by attorneys with the firm of Hughes Socol, Piers Resnick & Dym, of Chicago.
Edelson and CUB asked for permission to intervene in the case in October. That motion was granted by U.S. District Judge Jorge Alonso on Dec. 23, who gave CUB until Jan. 7 to file their own complaint in the case.
CUB argued it deserved a seat at the table in the case because it had been established by Illinois law as the organization designated to represent Illinois utility customers. Since Gress’ lawsuit sought payouts from ComEd for Illinois utility customers, CUB said it and its attorneys should also have a stake in any judgment or settlement ComEd may need to pay to resolve the legal action.
Alonso said CUB’s lawsuit was similar enough to Gress’ to allow CUB and Edelson to join that case.
The CUB lawsuit does not mention Madigan either by name or by reference.
Instead, it solely targets ComEd’s role in the alleged racketeering scheme, and refers to those participating in the scheme as the “ComEd Enterprise.” The complaint asserts that it was “ComEd executives at the top” of the alleged scheme, not Speaker Madigan.
“While utility consumers would always have been harmed by unfairly high rates, the harm is particularly acute this year, as hundreds of thousands of Illinoisans have lost their jobs due to the coronavirus pandemic,” CUB said in its complaint. “Many Illinois residents and businesses have fallen behind on their utility bills. ComEd, meanwhile, continues to reap the benefits of its nearly decade-long scheme - even after admitting what it has done.”
In addition to demanding ComEd repay the money it allegedly wrongfully collected from consumers, CUB's lawsuit asks for attorney fees for the Edelson firm and others working on the case.
ComEd is represented in the action by attorneys with the firm of Jenner & Block, of Chicago.