Supreme Court of the United States
Illinois ex rel. Madigan v. Telemarketing Associates, Inc.
May 5, 2003538 U.S. 600
Summary
The Court reversed the Illinois Supreme Court, holding that the Attorney General's fraud claim—based on false, intentionally misleading statements about how donations would be used—survives a motion to dismiss despite the high percentage of funds retained by the fundraiser; the First Amendment does not protect such fraudulent speech. Justice Scalia, in a concurring opinion, argued that the majority’s approach would wrongly permit fraud actions based solely on fee percentages.