Like many shoppers, attorney Stephen Diamond buys lots of stuff online. But unlike other consumers, he sues retailers that don't charge him state and local sales taxes -- and is making a profit doing it.
Using a state whistle-blower law, Mr. Diamond since 2002 has filed about 95 suits in Cook County court here against retailers that failed to charge him taxes on Internet sales, alleging that they broke the law. In cases where the state of Illinois joins the suits and prevails, he is entitled to up to 25% of the financial damages, with the rest going to state coffers.
"This is a no-brainer," says Mr. Diamond, a veteran class-action attorney who has a scenic view of Lake Michigan from his downtown office. "I started going on the Internet and discovered to my astonishment that companies like Target Corp. and Wal-Mart were not collecting taxes on their Internet sales. I was like, "Wow!"
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