Illinois ex rel. Madigan v. Telemarketing Associates

Public Citizen submitted an amicus brief on behalf of itself and 175 other non-profit organizations in this U.S. Supreme Court case that presented the question whether state and local regulators have the authority to pursue a fraud action against a charity or a professional fundraiser based on a failure to volunteer to potential donors the charity’s fundraising cost percentage in situations where an official decides-after-the-fact and without advance warning-that the charity’s fundraising costs were “too high.” The Court held that First Amendment did not bar the fraud claims asserted under Illinois law against professional fundraisers hired by a charitable organization, where those claims were based on allegations that the fundraisers made false or misleading representations designed to deceive donors about how their donations would be used.