The lawsuit alleges that forced shutdowns of small businesses violate civil liberties and have a long-term economic impact.
"Defendants' orders have proximately and legally caused tremendous financial harm not just to Plaintiffs businesses, but to the entire California economy," the suit says.
"We've got small businesses that have been effectively put out of business or forced to close literally without rhyme or reason," lead attorney Mark Geragos of Geragos and Geragos in Los Angeles told ABC News.
The seven businesses include Gondola Adventures, Inc.; Hernandez Productions, Inc.; King's Pet Grooming, Inc.; Sol De Mexico, Inc.; Wildfire, Inc.; Ybanz Gonzalez, Inc.; and Yreka Food Enterprises, LLC.
"Non-Essential businesses might never financially recover as a result of Defendants' Orders and may end up entirely out of business," the suit states.
Geragos says they believe the decision to shut down should be left up to each individual business.
"Our country was built on the premise of life, liberty and the pursuit of happiness, and today in 2020 those freedoms are being stripped away from law-abiding citizens and businesses, without rational thought or a rational basis," Geragos told ABC News.
This suit is being brought against Gov. Gavin Newsom, Mayor Eric Garcetti, the counties of Los Angeles, Orange, Ventura and Riverside, the Los Angeles Board of Supervisors, the Sheriff of Los Angeles, the Los Angeles Public Health Officer, and the State of California Public Health Officer.
"As well-intentioned as these Orders are with respect to the general public's health, safety and welfare," the lawsuit reads, " they have come at a steep price with respect to the complete and utter restraint on Californians' civil rights and liberties."
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