Profile
Paul J. Ferak is Co-Chair of the Financial Services Litigation Practice. Paul focuses his practice on financial services litigation, business litigation, and class action defense. He has served as lead and co-lead counsel in matters across the country. He manages a national team of attorneys across Greenberg Traurig’s offices defending financial institutions in a variety of consumer and business matters and class actions. He has defended class actions involving mobile banking, electronic payments, credit cards, mortgages, and overdraft practices. He also regularly defends matters alleging violations of various statutes affecting the financial services industry, including credit cards, banking, and mortgage laws; privacy laws; and state consumer fraud laws; as well as matters relating to allegations of breach of contract and lender liability.
Paul is one of the leaders of the firm’s franchise litigation practice. He has represented franchisors in high-stakes litigation involving claims of breach of contract, breach of good faith and fair dealing, fraud, consumer fraud, tortious interference, and violation of various franchise laws. He has broad experience handling franchise terminations, nonrenewals, and the enforcement of in-term and post-termination covenants. He has handled both class and individual franchise cases.
Paul also has handled a variety of complex business disputes, including working capital, earn-out, and other post-acquisition claims in arbitration and in court.
Concentrations
- Commercial litigation
- Bank litigation
- Class action defense
- Merger and acquisition disputes
- Franchise litigation
Capabilities
Experience
- Represented a financial institution in a mobile banking class action, seeking certification of a national class. Obtained dismissal of the putative class action based on failure to state a claim and on preemption grounds.
- Represented a credit card issuer in a dispute with a credit card processor asserting negligence claims in connection with a multi-year fraud scheme carried out by the merchant and others. Involved efforts by processor to recover chargeback losses from credit card issuer. Case dismissed.
- Represented a company in a class action lawsuit by credit card customers involving claims of invasion of privacy, consumer fraud, and unjust enrichment in relation to information-sharing practices. Became involved in the case after certification of a national class against the company. Obtained summary judgment ruling against the entire class of over 55 million consumers. Decision affirmed on appeal.
- Represented a credit card issuer in connection with claims for breach of contract, fraud, fraudulent inducement, and negligent misrepresentation.
- Represented a national bank in a case involving breach of contract and other claims relating to the alleged improper payment of checks. Case was dismissed prior to discovery and without payment after briefing was completed on client’s motion to dismiss.
- Represented financial institutions in overdraft class action matters, seeking certification of both statewide and national classes.
- Represented a national bank in a putative class action involving claims arising under the Illinois Interest Act and for consumer fraud and breach of contract. Obtained dismissal of the case with prejudice prior to any discovery.
- Represented a financial institution in litigation involving claims related to the deposit and payment of fraudulently endorsed checks. Case was resolved with multi-million dollar payment to the financial institution client.
- Represented a financial institution as plaintiff in litigation involving breaches of a participation agreement in connection with a property development. Resolved matter through settlement prior to trial.
- Represented a credit card issuer in Fair Credit Reporting Act and Fair Credit Billing Act matters.
- Represented a company in connection with a putative class action relating to an alleged data breach. Class certification denied.
- Represented a financial institution in matters alleging fraud and other claims in relation to an alleged Ponzi scheme. Obtained dismissal of actions.
- Represented a financial services company in relation to a Ponzi scheme associated with the purchase and sale of USDA business and industry loans in the secondary market. Recovered more than $120 million dollars from businesses and individuals connected with the fraud.
- Represented a financial institution against an international manufacturer and individual and company guarantors for breach of contract. Obtained summary judgment under loan and guaranty agreements and defeated arguments based on impairment of collateral and other grounds.
- Represented a financial institution on claims arising under the Fair Debt Collection Practices Act. Obtained dismissal of the case prior to discovery.
- Represented an electronic trading company in litigation involving federal securities, breach of contract, breach of fiduciary duty, conversion, and other claims. Obtained dismissal of the case prior to discovery.
- Represented one of the nation's largest retailers in a series of putative class action lawsuits arising out of the marketing and sale of certain products. Litigation team defeated motions for class certification of both nationwide and statewide classes in multidistrict litigation proceedings. Obtained dismissal of numerous individual claims. Also obtained favorable rulings from state trial courts dismissing complaints in their entirety and had those rulings affirmed on appeal.
- Represented a major retailer in a putative class action alleging claims based on consumer fraud relating to the charging of restocking fees. Case was resolved prior to discovery after the filing of a motion to dismiss.
- Represented a major retailer in a class action lawsuit involving claims of invasion of privacy, consumer fraud, and unjust enrichment.
- Represented a music company and record label in putative class action lawsuit based on allegations of deceptive packaging, labeling, and advertising. Obtained dismissal of the case prior to discovery.
- Represented a major international auditing firm in federal securities class action litigation and other matters arising out of the bankruptcy of one of the largest retailers in the country. Obtained dismissal of the putative class action securities lawsuit on loss causation and other grounds and had dismissal order affirmed by the Sixth Circuit Court of Appeals. D.E.&J. Ltd. P'Ship v. PricewaterhouseCoopers LLP, 284 F. Supp. 2d 719 (E.D. Mich. 2004), aff'd, 133 Fed. Appx. 994 (6th Cir. 2005).
- Represented franchisor in putative class action asserting claims for fraud, declaratory relief, and violation of various franchise disclosure laws. Class claims stricken and matter compelled to individual arbitration.
- Represented franchisor in matter involving allegations of improper nonrenewal and unlawful expiration of the franchise agreement. Case dismissed with prejudice prior to discovery.
- Represented franchisor in matter involving allegations of negligence and other causes of action, seeking to hold franchisor responsible for failure of general contractor to complete construction of franchisee’s restaurant. Joined as counsel after the close of discovery. Won summary judgment on all claims.
- Represented franchisor in matter seeking to hold franchisee individually responsible under guaranty for various violations under franchise agreement.
- Represented franchisor in connection with lease and other disputes with landlord due to failure of franchisee to perform under lease.
- Represented franchisor in connection with claims against franchisee for violation of various non-compete and other terms under franchise agreement and in relation to sale of franchise.
- Represented franchisor in matter involving claims for termination of franchise agreement and defense of claims for breach of contract, fraud, and violation of various franchise laws. Matter involved substantial issues relating to jurisdiction, arbitration, and venue.
- Represented franchisor and served as lead U.S. counsel in dispute with international franchisee involving allegations of breach of contract, violation of in-term and post-termination covenants, and improper use of intellectual property and trade secrets.
- Represented franchisor in matter involving claims against vendor for violation of contract and non-compete and non-solicitation terms.
- Represented franchisor in matter involving claims against franchisee for damages and seeking termination of franchise agreement.
- Represented franchisor in connection with strategic plan to withdraw from market.
- Represented a seller in post-acquisition dispute asserting claims for breach of warranty and indemnification. Won matter at trial and recovered damages and attorneys’ fees.
- Represented a leading environmental testing firm in litigation against a major oil and gas company for breach of contract claims. Case was resolved with multimillion-dollar payment to testing firm.
- Represented a liquidation trustee of a trust holding assets of a former oil refinery. Part of litigation team defending the liquidation trustee in CERCLA litigation filed by federal and state governments seeking recovery costs.
- Represented a gasoline distributor in a case involving claims under the Petroleum Marketing Sales Act and for breach of contract. Case was resolved prior to discovery.
- Represented a government contractor in litigation involving claims of copyright infringement, trade secrets, and deceptive trade practices. Litigation team was brought in to prepare the case for trial. Case was resolved for the client.
- Represented a toy manufacturer and licensee in litigation involving claims arising under the Lanham Act and for breach of contract, misappropriation of trade secrets, unjust enrichment, and injunctive relief. Obtained a preliminary injunction against the licensor enjoining efforts to terminate the parties’ relationship. Case was subsequently resolved prior to trial.
- Represented an insurance company in a series of earnout disputes relating to the sale of affiliates and subsidiaries. Obtained court rulings compelling arbitration and, in aid of arbitration proceedings, had those rulings affirmed by the Seventh Circuit Court of Appeals. Lumbermens Mutual Casualty Co. v. Broadspire Management Services, Inc., 623 F.3d 476 (7th Cir. 2010). Also obtained favorable rulings from the accounting firm arbitrator on the merits.
- Represented a holding company in connection with litigation arising out of the purchase and sale of stock of various affiliates and subsidiaries. Obtained a favorable arbitration ruling in excess of $20 million in a post-closing adjustment dispute related to the sale.
- Represented a private equity firm in a matter involving allegations of fraud, breach of fiduciary duty, and breach of contract relating to over $80 million in equity and debt financing provided to a portfolio company.
- Represented a real estate developer and minority shareholder in an action relating to the development, construction, and management of a $108 million Chicago hotel.
- Represented a real estate owner and hotel and casino operator in actions arising out of the purchase and sale of real estate in Las Vegas, Nevada, valued in excess of $60 million. Expunged various lis pendens filed against the property by different entities and obtained judgments against several defendants.
Recognition & Leadership
- Listed, Crain’s Chicago Business, “Notable Gen X Leaders in Law,” 2019
- Listed, Leading Lawyers Network, 2019-2024
- Emerging Lawyer, 2015-2016
- Named, Client Service All Star, BTI Client Service All-Stars Report, 2018
- Team Member, The American Lawyer’s “Products Liability Litigation Department of the Year,” 2018
- Team Member, U.S. News - Best Lawyers®, Best Law Firms Edition, "Law Firm of the Year," Banking & Finance - Litigation, 2017
- Listed, Super Lawyers magazine, Illinois Super Lawyers, "Rising Star," 2014-2016
- Member, Winning Team, Global M&A Network’s Turnaround Atlas Award, "Insolvency Deal of the Year – Middle Markets," for the Chapter 11 restructuring of ShengdaTech, Inc., 2013
- Founding Member, Chicago-Kent Law Review Alumni Board
- Member, American Bar Association
- Litigation Section
- Business Law Section
- Class Action Section
- Member, Illinois State Bar Association
- Member, Chicago Bar Association
- Judicial Evaluation Committee’s Investigative Division
- Class Litigation Section
- Commercial Litigation Section
- Financial Institutions Section
- Member, Law360 Banking Editorial Advisory Board
- Member, International Franchise Association's Legal Symposium Task Force
- Former Adjunct Professor, Chicago-Kent College of Law
- Former Board Member, Firebelly Foundation
- Former Member, Young Professionals Network, William Blair and Company
- Former Member, Young Leaders Foundation, Chicago Community Trust, Economic Development Committee
Credentials
Education
-
J.D., Chicago-Kent College of Law, Illinois Institute of Technology
- Order of the Coif
- Editor-in-Chief, Chicago-Kent Law Review
- B.A., Political Science, magna cum laude, Northern Illinois University
Admissions
- Illinois
- U.S. Court of Appeals for the Seventh Circuit
- U.S. Court of Appeals for the Sixth Circuit
- U.S. Court of Appeals for the Eighth Circuit
- U.S. Court of Appeals for the Fourth Circuit
- U.S. Court of Appeals for the Ninth Circuit
- U.S. District Court for the Eastern District of Michigan
- U.S. District Court for the Northern District of Illinois, including Trial Bar
- U.S. District Court for the Western District of Wisconsin
- U.S. District Court for the District of Colorado
- U.S. District Court for the Southern District of Illinois
- U.S. Bankruptcy Court for the Western District of New York