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Pennsylvania Taxpayers File Lawsuit Against Commonwealth of Pennsylvania Citing Flawed Lottery RFP Process; Tierney Communications Supports Taxpayers' Efforts.

PHILADELPHIA -- Twelve Pennsylvania taxpayers including a number of prominent business owners along with State Senator Vincent Fumo (D-Philadelphia) and State Senator Joseph Conti (R-Bucks County), today filed a lawsuit against the Commonwealth of Pennsylvania's Department of Revenue. The taxpayers, who filed the suit in Commonwealth Court, assert that a seriously flawed RFP process for advertising services on behalf of the Pennsylvania Lottery could result in great damage to the Lottery fund and, as a result, the older Pennsylvanians who rely on programs funded by Lottery proceeds.

Tierney Communications, the largest communications firm in the mid- Atlantic area, earlier this year filed an official protest with the Commonwealth of Pennsylvania and the Department of Revenue concerning the RFP then underway for the Lottery advertising contract. The RFP process which initially began in August, 2001 was stopped and then re-started in October, 2001 and did not reach a conclusion until minutes after Tierney sent a Letter of Protest to Secretary of Revenue Larry Williams on February 28, 2002.

As stated in the complaint filed by Richard A. Sprague, Esq., of the law firm of Sprague & Sprague,
 "This action is brought by a group of Pennsylvania taxpayers who have been
 aggrieved by the actions of the Commonwealth of Pennsylvania, Department
 of Revenue in failing to discharge its duties so as to assure fair,
 competitive access to Commonwealth agency procurement by responsible
 contractors, all to the detriment of the petitioner taxpayers and other
 taxpayers throughout the Commonwealth. The failure of the Department of
 Revenue to meet its duties stems from its concerted effort to retaliate
 against Tierney Communications. This retaliation occurred because Tierney
 Communications fully cooperated with the Commonwealth's Auditor General
 and contradicted positions taken by the Lottery during the course of a
 special audit conducted by the Auditor General, which audit was completed
 just months before the procurement process began for a new lottery
 advertising services contract. The Auditor General found that the Lottery
 had used Tierney in a deliberate effort to circumvent the Commonwealth's
 control and oversight requirements from operating as intended. Because
 Tierney Communications cooperated fully with the Auditor General's special
 Audit and supplied information to the Auditor General adverse to Lottery
 officials and which supported evidence of the Lottery's mismanagement and
 improper administration of Lottery funds, the Department of Revenue
 inserted new provisions into the request for proposals for lottery
 advertising services, and deleted other provisions, which were designed
 and, in fact, did discriminate against Tierney Communications."


"I welcome the support of State Senators Fumo and Conti and these business owners," commented Brian P. Tierney, chairman and founder of Tierney Communications. "As I have stated numerous times, the negative effects of a flawed RFP process are far reaching. A flawed procurement process ultimately hurts the older Pennsylvanians who should benefit from a Lottery program that is fiscally sound and operates beyond reproach. Together we are fighting for every hard-working Pennsylvania taxpayer, every older Pennsylvanian who depends upon the PACE program, and every small business owner who dutifully serves the Lottery every day by selling tickets," added Tierney.

Headquartered in Philadelphia, Tierney Communications is a full-service strategic communications agency with billings of more than $273 million and 173 employees. Tierney Communications' two main divisions include Tierney DeGregorio Advertising and Tierney Strategic Communications. These two divisions are served by an in-house team offering direct response, interactive, public affairs, media and research. The agency, which also maintains offices in Harrisburg, Pa., and Cherry Hill, N.J., represents clients including the Blue Cross Blue Shield Association of America, Yellow Pages Integrated Media Association, Independence Blue Cross, McDonald's, Sunoco, Pennsylvania State Lottery, White Rain, IBM, Exelon, American Water Works Company, Giant Foods, Verizon, and Aventis Environmental Science. Tierney Communications is a member of the Interpublic Group of Companies , a global marketing and communications services company, serving more than 4,000 multinational, regional and local clients through offices located in 130 countries.

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Contact: Suzanne M. Tavani of Tierney Communications, +1-215-790-4380, Mobile, +1-215-901-8132 or stavani@tierneyagency.com
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Publication:PR Newswire
Geographic Code:1USA
Date:Jul 10, 2002
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