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Chicago Teachers Union sues Illinois Policy Institute for ‘toxic’ branding, ‘defamatory’ claims about audits

Tina Sfondeles

The Chicago Teachers Union is taking aim at the Illinois Policy Institute and its legal arm, claiming in a defamation lawsuit filed Monday that social media posts and articles bashing the union’s finances and its president Stacy Davis Gates — and branding the union “toxic” — are part of a “deliberate campaign” to harm the union’s reputation.

The CTU is framing the suit as Davis Gates “standing up to the multimillion dollar marketing firm, Illinois Policy Institute,” the Liberty Justice Center and Austin Berg, the nonprofit’s marketing vice president. The law firm identifies itself as nonpartisan, but it is known for taking on a high-profile conservative legal case before the Supreme Court that undermined the power of labor unions.

“Falsely accusing a labor union of fraud, dishonest accounting, and misuse of funds strikes at the heart of the Union’s integrity, fitness, and ability to represent and advocate for its approximately 30,000 member-educators,” the suit, filed in Cook County Circuit Court, states.

The Chicago Teachers Union is a political powerhouse, helping to elect Mayor Brandon Johnson and propelling preferred political candidates throughout the city. The suit comes ahead of crucial school board races in the November election — and as Johnson mulls another mayoral run. John Owen, attorney for the CTU, would not comment on the timing of the suit but pointed the finger at the defendants’ “ongoing campaign.”

“These statements, the first incidents we refer to, started in August of 2025. But that’s been an ongoing campaign to attack and smear the union,” Owen said. “And the union at this point has decided to stand up for itself and hold these defendants accountable for these defamatory statements.”

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