News: Press Releases

Eric Macey and Richard Miller recently obtained a large judgment in federal court on behalf of two affiliates of Synapse Group, Inc. -- NewSub Magazine Services LLC and Gift Services, LLC. Synapse and its affiliates are in the business of marketing and selling merchandise and magazine subscriptions through inserts in credit card statements.

Synapse originally sued Heartland Direct, Inc., a broker, for misappropriation of funds belonging to Synapse. Macey and Miller obtained summary judgment as to liability on Synapse’s breach of contract claim in that action. They had also obtained summary judgment on Heartland’s counterclaims and affirmative defenses.

Recently, a trial took place before Judge John F. Grady of the Northern District of Illinois to liquidate Synapse’s damages and to determine whether Synapse was entitled to pierce the corporate veil of Heartland to hold its primary shareholder, Charles A. Rey, liable for Heartland’s debt. Macey and Miller also asked the Court to pierce the veils of two other entities controlled by Rey, Lifetime Marketing, Inc. and Rey Marketing Inc.

Macey argued that such multiple-piercings were appropriate given the conduct of Rey. At the conclusion of a two-day trial, the Court agreed with Macey’s argument and, accordingly, held that Heartland, Rey, and the two additional Rey-corporations were jointly and severally liable for the debt to Synapse.