eastern division people of the state of illinois, ) alta ... · case: 1:14-cv-03786 document #: 25...
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UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS
EASTERN DIVISION PEOPLE OF THE STATE OF ILLINOIS, ) ) Plaintiff, ) ) Case No. 14-cv-3786 vs. ) ) ALTA COLLEGES, INC., et al ) Judge Ronald Guzman )
Defendants. ) Mag. Judge Geraldine Soat Brown
MEMORANDUM IN SUPPORT OF PLAINTIFF’S MOTION TO SEVER COUNT I, DECLINE SUPP. JURISDICTION ON COUNT II, AND REMAND COUNTS I & II
For two years, the parties litigated a single Count complaint in front of Judge Kathleen
Kennedy in Illinois state court in which the State of Illinois alleged that Defendants, who operate
for-profit career-focused schools in Illinois and other states, had violated the Illinois Consumer
Fraud Act (“ICFA”) by making misleading statements and omitting to state material facts to
prospective and enrolled students in Defendants’ criminal justice program touching on nearly
every important aspect of the education purportedly offered by Defendants.
On May 6, 2014, the state court granted Plaintiff’s motion for leave to file a Second
Amended Complaint (“SAC”) that added three new Counts. Each new Count asserted that
institutional financing offered by Defendants to its students was structurally unfair and/or
abusive under Illinois and federal law, owing to a default rate that ensnared a majority of
students who used the financing. On May 22, 2014, Defendants removed the action.
Plaintiff now requests that the Court sever Count I of the SAC pursuant to 28 U.S.C.
§1442(c)(2), as Count I arises from a separate and distinct nucleus of operative facts and is
outside of this Court’s supplemental jurisdiction. In addition, Plaintiff requests that the Court
decline to exercise supplemental jurisdiction over Count II, which alleges that Defendants’
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