- Time to put teeth back into sanctions: more on reintroduction in Congress of LARA, the Lawsuit Abuse Reduction Act [Wajert, Wood, more, earlier]
- RFK-Jr.-&-friends watch: Environmentalists wrangle in court over “keeper” monicker [Coleman]
- More on Chicago school that bars home-brought lunches [Adler, Welch, earlier]
- Definition of “cyber-bullying” in newly passed Arkansas bill could imperil legitimate speech [Volokh] Related: Harvey Silverglate video.
- Thoughts on a new Hungarian constitution [Ilya Shapiro, Cato at Liberty]
- Court reveals Righthaven’s operating agreement with client newspaper chain [Legal Satyricon, PaidContent, Las Vegas Sun]
- Cops: Ohio man stole gavel from judge [Lorain Chronicle-Telegram, Smoking Gun]
Posts Tagged ‘Arkansas’
March 30 roundup
- “Woman Sues Adidas After Fall She Blames on Sticky Shoes” [Lowering the Bar]
- Texas lawmakers file loser pays proposals [SE Tex Record] Actual scope of proposals hard to discern through funhouse lens of NYT reporting [PoL] Marie Gryphon testimony on loser-pays proposals in Arkansas [Manhattan Institute, related]
- Google awarded patent on changing of logo for special days [Engadget via Coyote]
- “Civil Gideon in Deadbeat Dad Cases Would Be ‘Massive’ Change, Lawyer Tells Justices” [Weiss, ABA Journal, Legal Ethics Forum]
- Amateur-hour crash-fakers in Bronx didn’t reckon on store surveillance camera [NY Post]
- “Plaintiffs’ Lawyers in Cobell Defend $223M Fee Request” [BLT]
- Show of harm not needed: FDA kicks another 500 or so legacy drugs off market, this time in the cold-and-cough area [WaPo]
- “Wal-Mart v. Dukes: Rough Justice Without Due Process” [Andrew Trask, WLF]
February 17 roundup
- Gender imbalance in Wikipedia and geographic bees? Find something else to worry about [Heather Mac Donald, Slate, via Secular Right; Perry] “On Equality: The Anti-Interference Principle” [Donald Kochan, Chapman, SSRN]
- High-profile NY attorney suspended after “avalanche” of complaints [Turkewitz, more]
- Credit unions vs. class action lawyers [Funnell]
- Obligation to use club cards to facilitate recalls? CSPI’s strange lawsuit against Safeway [Goldfarb, Food Liability Law]
- “Arkansas Justice Has a Generous Lawyer Friend, Disclosure Forms Reveal” [Weiss, ABA Journal]
- NYC pols plan regulatory squeeze on popular inter-city “Chinatown bus” operators [DNAInfo, Reason]
- “Kentucky appeals court reverses $42 million fen-phen fraud judgment” [Courier-Journal, PoL]
- $1,500 per lead brought in: why you see so many mesothelioma ads on the web [three years ago on Overlawyered]
Litigation slush funds, cont’d: Arkansas
Arkansas Attorney General Dustin McDaniel has bestowed $100,000 to assist in construction of the Arkansas Fallen Firefighters Memorial on the grounds of the state Capitol. The money came from the settlement of a lawsuit against the Pfizer drug concern, the connection of which to the cause of fallen firefighters is at best obscure. [Arkansas Online]
December 4 roundup
- Insurance mandate or no, New Jersey specialists tending to duck out of high-legal-risk procedures like mammography [Amy Handlin, Gloucester County Times via NJLRA]
- Audi redux, or something different this time? L.A. Times endorses charges of sudden acceleration against Toyota [Holman Jenkins/WSJ, FindLaw “Injured“]
- Ghastly idea of the year: Rep. Waxman wants federal government to be “responsible” for fixing journalism [Coyote, Bainbridge]
- “Arkansas Judge Tosses Defamation Lawsuit Against Dixie Chicks Over ‘West Memphis Three’ Letter” [Citizen Media Law, Longstreth/American Lawyer]
- Judge Weinstein: falsification by arresting officers seems “widespread” in NYPD [Balko, Greenfield]
- U.K.: Carbon ration cards? [Krauthammer]
- Nova Scotia, Canada: “A Couple in their 70s Wave at A Kid…And In Swoop the Cops” [Free-Range Kids]
- Barbra Streisand loses suit over aerial photo of her Malibu home taken by environmental group; by suing, she ensures that many thousands more people will see the photograph, in what is dubbed “Streisand effect” [six years ago on Overlawyered]
Gene Cauley gets seven years
The Arkansas plaintiff’s lawyer says he was too embarrassed to make layoffs as his finances turned sour, which is why he stole the $9.3 million in class-action settlement funds [WSJ Law Blog, ABA Journal] Earlier here, here, and here.
More from Kevin LaCroix:
An earlier WSJ.com Law Blog post reported (here) that Cauley was in fact a protégé of Bill Lerach. Today’s article on Bloomberg (here) about Cauley’s criminal sentencing notes that Cauley joins a growing list of plaintiffs’ securities class action attorneys who have “been jailed for felonies,” including Bill Lerach himself and his former law partners, Mel Weiss, Steven Schulman and David Bershad, and including even Marc Dreier.
These gentlemen of course made their living for many years accusing corporate officials of fraud. Ahem. Yes, well…isn’t ironic, don’t you think?
The rise and fall of Gene Cauley
Who would have dreamed that a protege of Bill Lerach would wind up later copping to a felony rap resulting from ethical infractions? (Wait, don’t answer.)
At a barbershop in 1994, [Cauley] says, he picked up Forbes magazine and saw a profile of Lerach; it was the famous article, where the attorney was quoted as saying, “I have the greatest practice . . . I have no clients.”
Cauley approached Lerach and was soon launched in a thriving class action practice (“His usual way to deal with things was to yell and bang things and threaten,” said a fellow plaintiffs lawyer, Glen DeValerio of Boston.) It came crashing down under revelations that the Little Rock, Ark.-based lawyer took $9 million from clients’ settlements to spend on firm overhead and unrelated investments. [Koppel/WSJ, ABA Journal, interview-based WSJ Law Blog story first, second]
“Lawyer charged with stealing over $600,000 in client settlement money”
According to Manhattan D.A. Robert Morgenthau, New York lawyer Marc Bernstein “settled these cases pretty cheap, then took the money and ran.” [NY Daily News, press release] Meanwhile: “Prominent Arkansas plaintiffs securities lawyer Gene Cauley is expected to plead guilty for failing to pay clients $9.3 million in settlement funds he was supposed to be holding as their escrow agent.” [ABA Journal, earlier] According to a report dated February (PDF) from the ABA’s Center for Professional Responsibility, New York is among the states that have adopted payee notification reforms intended to catch this category of fraud at an early stage; Arkansas has not. For more on payee notification, see my 2006 paper with Peter Morin.
“Prominent Arkansas Lawyer Probed Over Missing $9 Million”
“Prominent Arkansas plaintiffs’ lawyer Gene Cauley has landed in some hot water due to his apparent inability to produce more than $9 million in settlement money he was overseeing for clients, according to federal court records.” His lawyer, John Wesley Hall, told Judge Jed Rakoff at a hearing “that the missing settlement funds ‘are presently unavailable,’ but Hall declined to elaborate, citing Cauley’s privilege against self-incrimination.” He says, however, that Cauley is working to “find the money and pay it in 90 days” and expects to “make everyone 100% whole”. [WSJ Law Blog].
Reused axles in manufactured homes
Despite some objections by class members to the resulting class action settlement, its approval is consider likely; class lawyers are set to bag $15 million while class members will get mostly vouchers unless they care to take delivery of the actual (generally useless to them) axles and wheels used to transport their manufactured homes. [SE Texas Record; Texarkana, Keil & Goodson, Nix Patterson & Roach, Crowley Norman, W.H. Dub Arnold]