- Philadelphia Common Pleas Court, long a forum-shopping destination, draws lawyers to sue over cladding after London’s Grenfell Tower fire [David Murrell, Philadelphia magazine]
- Georgia lawprof Elizabeth Chamblee Burch argues in new book that lawyers are enriching themselves at the expense of their clients in mass tort multidistrict litigation [her site; Katheryn Tucker, Fulton County Daily Report; Leigh Beeson, UGA Today, more]
- “Court cases reveal secret litigation networks for trucking accidents” [Aaron Huff, Commercial Carrier Journal]
- U.S. Chamber report on private rights of action and privacy claims by Mark Brennan, Adam Cooke, and Alicia Paller of Hogan Lovells;
- “Is PFAS the next asbestos? Probably not, lawyers say, but it may come close” [Daniel Fisher, Legal NewsLine]
- Uh-oh: “Progressive advocates have recently begun working with legislators in a handful of states to provide a qui tam mechanism for enforcing state statutory rights.” [Myriam Gilles and Gary Friedman, SSRN]
Posts Tagged ‘litigation finance’
Feds charge doc, medical consultant in mesh litigation scheme
“Federal prosecutors in Brooklyn have charged a physician and the owner of a medical consulting firm over a scheme to persuade women to have their pelvic mesh implants surgically removed to bolster the value of lawsuits against the devices’ manufacturers.” The prosecutors charge that the two lied to women about the health risks of mesh and of its surgical removal, and participated in a system of improper bribes and kickbacks. “The procedures were paid with money from high-interest cash advances arranged by a group of so-called litigation finance firms.” [Matthew Goldstein, New York Times, earlier on pelvic mesh here, here, here, etc.] More: Goldstein on suits by clients against lawyers.
Feds: we’ve had it with qui tam gamesmanship
“The U.S. Department of Justice is asking federal judges around the country to dismiss lawsuits it says are brought by shell companies that misrepresent their true purposes – filing meritless litigation against health care companies…. The DOJ says these plaintiffs were created for the sole purpose of filing suit under the federal False Claims Act and is complaining that it spent hundreds of hours investigating kickback allegations only to find no merit to them…. Among the law firms representing the plaintiffs in the cases is the firm of prominent personal injury lawyer Mark Lanier of Texas.” [P. David Yates, Legal NewsLine/Forbes]
“Significant to DOJ’s analysis was the fact that the qui tam relators used ‘false pretenses’ to obtain information from witnesses. According to the government, the actions all were filed by a ‘professional relator’ entity that sought to develop contacts and inside information under the guise of conducting a research study of the pharmaceutical industry, and offering to pay individuals for information provided in a purported ‘qualitative research study,’ even though the information was ‘actually being collected for use in qui tam complaints filed by [the professional relator] through its pseudonymous limited liability companies.’…it would be awkward for DOJ to sit idly by and allow qui tam cases to proceed, in the government’s name—which is how the qui tam system works—when those cases are purportedly premised on a scheme one district court already described as involving ethical violations and ‘an elaborate series of falsehoods, misrepresentation, and deceptive conduct.'” [Joe Metro and Andy Bernasconi, Drug and Device Law]
And yet more: “Prominent qui tam lawyers are now questioning the nomination of William Barr as attorney general, citing comments he made nearly 30 years ago questioning the constitutionality of private relators under the FCA. Some of the lawyers who signed a recent letter to U.S. Sen. Chuck Grassley criticizing Barr, including Harvard Law School Professor Nancy Gertner, participated in litigation against Celgene that the government declined to join but nevertheless generated $280 million in settlements and more than $30 million in legal fees.” [Daniel Fisher, Legal NewsLine/Forbes]
Liability roundup
- $101 million in Texas could be biggest trucking damages award in history; crash victim had “told the responding police officer he was not injured and continued on with his journey” [John Kingston, FreightWaves]
- “Lawyers For Texas Counties In Opioid Cases May Not Have Valid Contracts” [Daniel Fisher, earlier on Texas scramble here, here, here, and especially here]
- Arbitration defended [Ross A. Marchand, Economics21]
- “Madden NFL 19 Jacksonville shooting victim sues Electronic Arts, claiming negligence” [Cyrus Farivar. ArsTechnica]
- “Prosecutors Are Said to Issue Subpoenas Over Pelvic-Mesh Surgery Financing” [Matthew Goldstein and Jessica Silver-Greenberg, New York Times, earlier and more]
- Federal courts split on whether SCOTUS’s Bristol-Myers Squibb limits on personal jurisdiction apply to class actions [Bradley, Akin Gump, Carlton Fields]
Liability roundup
- Florida law firm that served drinks isn’t responsible for death of employee who walked home intoxicated and was hit by train [Florida appeals court, Salerno v. Del Mar Financial Service]
- Family speaks out after local motels hit with Scott Johnson ADA suits [Allison Levitsky, Palo Alto (Calif.) Daily Post first and second posts]
- “When third-party funders weigh in on settlements, they may pressure plaintiffs and their attorneys to settle early” to make Wall Street numbers [Matthew Goldstein and Jessica Silver-Greenberg, New York Times] More/related: Miles Weiss, Bloomberg on George Soros involvement; Chris Bryant and Federalist Society teleforum with Travis Lenkner and John Beisner on proposed amendments to Federal Rules of Civil Procedure to require disclosure of litigation financing arrangements;
- Phone-answering for dollars: “Man who has filed at least 83 TCPA lawsuits loses one in Tennessee court” [John O’Brien, Legal Newsline, earlier] “RICO case settled with TCPA firm accused of teaching former students to avoid paying loans by suing” [same]
- “The science on a link between talcum powder and cancer is uncertain” which didn’t keep Mark Lanier from scoring a $4.69 billion win in a St. Louis case [Jonathan D. Rockoff and Sara Randazzo, Wall Street Journal/Morningstar, Tim Bross, Margaret Cronin Fisk, and Jef Feeley, Bloomberg and related Fisk 2016 (“Welcome to St. Louis, the New Hot Spot for Litigation Tourists”), Reuters and more]
- “Trio of Soda Cases Test the Limits of Attorney-Driven Class Action Lawsuits” [Jeffrey B. Margulies, WLF]
Liability roundup
- Due diligence? Prosecutors say $32 million staged slip-fall ring drew on services of litigation finance firm [Matthew Goldstein and Jessica Silver-Greenberg, New York Times]
- Federalist Society podcast previews Frank v. Gaos, Ted Frank’s case on cy pres in a Google settlement;
- Will public get to look at details of $75 million class action fee that has been subject to criticism? [John O’Brien, Legal NewsLine and Max Brantley, Arkansas Times on State Street Bank and Trust settlement] Update: special master said to find attorney misconduct and recommend substantial fee refund [Chris Villani, Law360 (sub)]
- “Recent developments have let the air out of slack-fill lawsuits” [Meghana Shah, Brittany Cambre and Amber Unwala, New York Law Journal, earlier on slack fill] Theater-box candy suit: “Don’t squash our Junior Mints” [Chicago Tribune editorial]
- Tales of the Food Court: California class-action climate encourages flimsy claims against beer and bean purveyors [Greg Herbers, WLF]
- Supreme Court of Canada: commercial garage not liable for injury suffered by teen while stealing car from lot [Rankin (Rankin’s Garage & Sales) v. J.J.]
Liability roundup
- In “race to the courthouse,” lawyers urge Texas counties to sue over opioids [Marissa Evans, Texas Tribune] “Leading Pain Doctors Face Scores of Opioid Lawsuits” [Roger Parloff, who edits newly launched nonprofit site Opioid Watch] “Opioid Settlement Talks Hit Headwinds” [Sara Randazzo, WSJ] A professor (and friend) recently treated for cancer doesn’t care for the “just throttle the supply of prescription opioids” answer [Steven Horwitz, USA Today]
- Asbestos bankruptcy trusts are poorly defended against fraudulent claims. What happens if they run out of money? [U.S. Chamber Institute for Legal Reform study and release] Three senators introduce bill aimed at providing oversight of the bankruptcy trusts [Sen. Chuck Grassley] Have asbestos filings finally peaked? [Amanda Bronstad, National Law Journal] “Cleaning Up The Asbestos Litigation Mess: A Role For The Department Of Justice?” [Glenn Lammi, WLF/Forbes]
- Trial lawyers yearn to knock down validity of contractually agreed arbitration so that every dispute can go to litigation. Is this their year? [L.M. Sixel, Houston Chronicle]
- Judge turns back class action against Home Depot over size of 4x4s, other lumber [Scott Holland, Cook County Record; Jonathan Stempel, Reuters (can be refiled), earlier here and here]
- “The Impact of Lawsuit Abuse on American Small Businesses and Job Creators,” November testimony by John Beisner before Senate Judiciary Committee;
- “Civil Justice Update – Wisconsin Governor Walker Signs Into Law New Reforms” [Andrew C. Cook, Federalist Society] More on disclosure of litigation finance arrangements [Kevin LaCroix]
Liability roundup
- Activist high court, no-fault PPI auto insurance, assignment-of-benefits (AOB) claims helped Florida win top Judicial Hellhole ranking from American Tort Reform Foundation [Amy O’Connor, Insurance Journal]
- Maybe getting people interested in the age-old ethical dangers of champerty and maintenance would be easier if litigation finance were framed as a Chamber of Commerce vs. Peter Thiel match-up [Jacob Gershman, WSJ] “Prosecutors Investigate Firms That Offer Plaintiffs Early Cash” [Matthew Goldstein and Jessica Silver-Greenberg, New York Times]
- Seventh Circuit: parents, not Starbucks, bore duty of protecting 3-year-old from harm resulting from playing on crowd-control stanchions [Roh v. Starbucks]
- British Columbia is only Canadian province without limits on soft-tissue injury claims after car crashes, and now fiscal implosion at province-owned auto insurer ICBC may force leftist NDP government to reconsider that [Mike Smyth/The Province, Jason Proctor and Karin Larsen, CBC]
- “NYS Exposed: The one law adding $10,000 to the cost of a new home” [WHEC, New York Post editorial on scaffold law and other elements of state liability scene, earlier]
- “Former South Carolina Lawmaker Sentenced for Improperly Using Office to Help Trial Lawyers” [U.S. Chamber Institute for Legal Reform; Glenn Smith, Post and Courier; John Monk, The State]
Liability roundup
- Company that advances money to claimants against New York City also donates generously to New York politicos [Shawn Cohen, Julia Marsh, Rich Calder and Bruce Golding, New York Post and followup (“LawCash execs showering Schneiderman with campaign contributions”), as well as editorial and followup]
- Jesner v. Arab Bank (whether corporations are exposed to liability under Alien Tort Statute) argued at Supreme Court [John Bellinger and Andy Wang, Lawfare; Anthony J. Bellia and Bradford R. Clark, Lawfare; Just Security symposium; Federalist Society teleforum with William Casto and Samuel Estreicher]
- For defendants in pending patent litigation, T.C. Heartland decision on patent venue may not offer a get-out-of-Texas card [Jeffri A. Kaminski, WLF]
- Top ten class action related developments of 2017 [Paul Karlsgodt; plus Andrew Trask on the class action issues of ascertainability and Spokeo standing in 2017]. And Jim Beck offers a defense perspective on most and least helpful court decisions of the year for pharmaceutical and medical device makers;
- Missed this from 2014: how tort law creates pressures (before any dispute arises) to intrude on privacy [Eugene Volokh, Columbia Law Review]
- “Alabama SC: Settlement schedule violates due process rights, class members deserve more information” [Jessica Karmasek, Legal NewsLine; MedPartners securities action]
Medical roundup
- In welcome reversal of Obama-era ban, FDA will once more permit direct-to-consumer genetic testing [Meghana Keshavan/STAT News, FDA press release]
- Will California law hold a pharmaceutical maker liable — in perpetuity — for a drug that it did not make and did not sell? [Steven Boranian/Drug & Device Law, PLF on T.H. v. Novartis]
- Litigation funding group chases clients in hip replacement litigation [PR Newswire]
- ACA penalizes hospitals for high Medicare readmission rates, but new study links that policy to higher mortality for heart failure patients [Arnold Kling, Ankur Gupta et al., JAMA Cardiology, Cristina Boccuti and Giselle Casillas, Kaiser Family Foundation]
- Litigation tourism model that has done well for plaintiff’s bar now circling drain after Supreme Court’s Bauman, Bristol-Myers Squibb decisions [Jim Beck, Drug & Device Law, more, yet more; related on West Virginia, and from Michelle Yeary on choice of law and forum non conveniens]
- “FDA Commissioner Scott Gottlieb Goes to Bat For Evidence-Based Opioid Policies” [Mike Riggs, Reason] “Abuse-Deterrent Opioids Cross an Ethical Line” [Jeffrey Singer, Orange County Register]