Capital Region Honda Dealers, LLC has filed a lawsuit against Pinnacle Advertising and Marketing Group, Inc., along with several associated parties, alleging a complex scheme of fraud and breach of contract. The complaint was filed on April 11, 2025, in the United States District Court for the Northern District of Illinois. It accuses Pinnacle and its affiliates of engaging in deceptive practices that have cost the plaintiff over one million dollars.
The case revolves around a Marketing Master Services Agreement entered into by Capital Region Honda Dealers (the Association) with Pinnacle in 2021. Under this agreement, Pinnacle was supposed to provide advertising services for a fee calculated as a percentage of media buys' net costs. However, the Association claims that Pinnacle misrepresented these costs to inflate their profits illegally. The complaint details how Michael Magnusson and his company OneITOne LLC allegedly conspired with Pinnacle to mark up third-party vendor fees and charge inflated commissions without the Association's knowledge. "Pinnacle never disclosed that OneITOne was charging a double mark-up," states the complaint, highlighting how these actions breached contractual obligations and violated federal racketeering laws.
The plaintiff is seeking substantial relief from the court, including damages exceeding one million dollars, treble damages under RICO statutes, attorney's fees, and an injunction preventing further violations. The complaint underscores the severity of the alleged misconduct by emphasizing its systemic nature and potential impact on other clients who might have been similarly defrauded.
Representing Capital Region Honda Dealers are attorneys Neil Lloyd from ArentFox Schiff LLP in Chicago and Russell P. McRory along with Michael P. McMahan from New York City. The case has been assigned Case No.: 25-cv-3947.