'A flourishing industry' pairs plaintiffs lawyers with state AGs in contingency suits
Plaintiffs lawyers working behind the scenes are encouraging state attorneys general to file lawsuits against businesses with the aim of helping consumers—and padding the private lawyers’ pockets.
The private lawyers search for potential cases where a state or consumer is harmed, and then seek to sway usually Democratic attorneys general to file suit and hire the private lawyers to do the work, the New York Times reports. The private lawyers generally earn a 20 percent fee when the state collects an award.
“The partnership is part of a flourishing industry,” the Times says, “that pairs plaintiffs’ lawyers with state attorneys general to sue companies, a collaboration that has set off a furious competition between trial lawyers and corporate lobbyists to influence these officials.”
The private lawyers often make large donations to the attorneys general they are targeting as well their party organizations. The Times analyzed campaign finance records and more than 240 contracts with the private lawyers, concluding that many of the donations were made just before or after the private lawyers are hired.
In Mississippi, for example, private lawyers have earned $57.5 million in fees in the last two years filing suits for Attorney General Jim Hood, who has received $395,000 in contributions from plaintiffs law firms in the last decade. The suits have produced $400 million for the state in the 10-year period.
Hood’s office said in a statement to the Times that there was no link between law firm hiring and campaign donations. “Whether or not an individual makes a campaign contribution during an election cycle has no bearing on any decisions made by the office of attorney general or its career attorneys who adhere to the highest standards of professionalism,” the statement said.
See also:
ABAJournal.com: “Lobbyists target attorneys general; Dickstein touts its ‘strong relationships’ with AGs”
