Lawyers Create Big Paydays by Coaxing Attorneys General to Sue

Transcription

Lawyers Create Big Paydays by Coaxing Attorneys General to Sue
the swap for
imprisoned in
Helped
Detec
that Presiden
Late Edition
Today, sun with someWednesday.
clouds, chilly,
Imprisone
high 40. Tonight, mostly clear,
low
30. Tomorrow, some sunshine
giv- Obama
Mr.
ing way to increasing clouds, high
OPPORTUNITY IN HAVANA With relations thawing, American companies
are
38. Weather map is on Page
A30. hopin
Sarraff’s
nam
This article is by M
rent
andS.form
MERIDITH
$2.50
VOL. CLXIV . . . No. 56,720
NEW YORK, FRIDAY, DECEMBER
19, 2014 KOHUT FOR THE NEW YORK TIMES
ti, Michael
Sc
cials
identified
Frances
Robles.
American companies are hoping to develop new markets in Cuba. Page B1.
some of the —in
Crucial Spy in Cuba Paid
WASHINGTON
many
ways,
a perfe
to
the
C.I.A.
w
A Heavy Cold War
Price
man
so
important
to
inside Cuba’s
ligence apparatus th
telligence.
Helped Detect Agents in the U.S.,
but Was
mation
he gave to the
“I’m
in the
telligence
pa
Imprisoned for Almost Two Decades
Mr.Agency
Sarraff
COURTING FAVOR
ception
desk,”
long after Cuban
in ahim
spy vs.aus
By ERIC LIPTON
This article is by Mark Mazzet- and his work rested
for the C.I.A.
still and threw
plied,
signingStt
ti,
Michael
S.
Schmidt
and
classified.
The
United
trialPitch
lawyersFrances
and
lobRobles.corporate The
“I’m in the lobby, near By
theERIC
re- LIPTON
spy games
between
the
on the
for
nearly
two deca
urgency casual
WASHINGTON — When they
WASHINGTON — He was, in two countries lost theirThe
Rolando
Sarraff
played
on lon
after
the
fall
of
the
Soviet
Union,
R
ception desk,” Mr. King later re- byists to influence
many ways, athese
perfect spy officials.
— a
the spies have stuck to their
so important
tofurious
Cuba’s intel- but
met at the J. W. Marriott
Hotel ration that hasman
now
been
released
change
betwe
WASHINGTON
set
off
a
competition
befor more thanthe
two decades:
Cold
Wa
ligence
that the infor- roles
plied, signing the message “GK.” sheMuch
as with
bigapparatus
industries
have
pilfering
documents,
breakingout of Cub
and
flown
mation he him
gave to thewere
Central In- numshared
two
blocks
from
the
White
House,
hen they met at the J. W. Marriott Hotween trial lawyers
andpaidcorporate
lobbyists
to
crats,
which
enticing
government
telligence Agency
dividends codes and
Cuba
ceased
foundon
natural
Republican
thetheir
swap
The casual nature of the ex- bers
countries.for three C
longallies
after Cubanin
authorities
ar- officials to betray
staffing
levels
gleaned
“There were a number
of peopleof pages
telLinda
two blocks
from
Whiteattorney
House, influence
these
officials.
Singer,
a the
former
rested
him and
threw him in prissands
imprisoned
threat
to the
theU
in the
Cuban government who in
on for nearly two
attorneys
general
todecades.
combat
fedchange
between
the
two Demowere
valuable
to the U.S.,
just as
from
records
suggesting
resRolando
Sarraff Trujillothat
has
Linda
Singer,
a former
attorney
genMuch
as big
industries
have
found
natuthat
President
Obama
general
turned
plaintiffs’
lawyer,
by
The
New
Y
were a number
of people in— at th
story
now been released
from prison there
him were num- crats, which was among thou- eral regulations,
plaintiffs’
lawwho were
Wednesday.
and flown
out of Cubamistreated
as
part of the U.S. government
eral turned plaintiffs’
lawyer,
approached
Attorral
allies
in
Republican
attorneys
general
to
idents
were
being
approached Attorney General
the
saidenormous
Jerry
the swap for three Cuban spies helpful to the Cubans,”
just
a sketch
levels ney
gleaned
yers working
on
Obama
did n
sands
of pages
of emails
obtained
clandesimprisoned
inathe contingencyUnited States Komisar, who ranMr.
GeneralGary
Gary King
King
of
New
Mexico
withwith
an
combat
federal
regulations,
plaintiffs’C.I.A.
lawthere and
at other
facilities.
Cuba during
that President
Obama announced tine operations inMs.
of
New
Mexico
Singer’s
Sarraff’s
name,
butfi
Sarraff
hidde
gesting unusual
that res-proposition.
Wednesday.
fee basis
have
teamed
up mostly
Continued on Page A16
by The New York Times, belied yers
working
on
aObama
contingency-fee
basis
have
Mr.
did THE
not give
rent
and former
Am
MERIDITH
KOHUT
FOR
NEWMr.
YORK
TIMES
“Do
you
have
10
minutes
at
any
an
unusual
proposition.
suade
Mr.
Kin
Sarraff’s name,
but several
curing mistreatedSinger
with Democratic
state
attorneys
the
enormous
payoff
for teamed
wanted
himpotential
to sue
the
owner
up
mostly
with
Democratic
state
atcials
identified
him
rent
and former
American
offiWith relationsMs.
thawing,
American
companies
are
hoping
to
develop
new
markets
in
Cuba.
Page
B1.
point
today?”
Ms.
who some
useof his
statean
Ms.thawing,
Singer
wanted
him
to sue
cials identified
himSinger,
and discussed
With relations
companies are hoping
to develop
new markets in
Cuba. Page B1. to file
r facilities.
the informat
general
hundreds
Ms.
Singer’s
firm
if she
could
persome of
the information
he gaveof lawof a nursing
home
inAmerican
rural
New
Mexico
that
torneys
general
to
file
hundreds
of
lawsuits
the
C.I.A. while burrowed
deep
astoinside
attorney
general
in to gate
andwhile
sue,burw
thenever
owner
of aofnursing
home
in had
the C.I.A.
Cuba’s
Directorate
of Insuitsserved
against
businesses
that
0 minutes
any had
Mr.atKing
heard
andhire
Ms.her
Singer
businesses
that
make
anything
from
suade Mr.
King to
and against
telligence.
inside
Cuba’s
Direct
the
District
of
Columbia,
wrote
to
rural
New
Mexico
that Mr.
King
The partne
Sarraff’s
storypharmaceuis a chapter
Lawyers
Create
Big
Paydays
by
Coaxing
Sue in Mr.
make to
anything
from
had never
set
foot
in.state
She
later
presented
him General
pharmaceuticals
to
snack
foods.
Ms. Singer,
who
use
his
powers
toAttorneys
investitelligence.
a spy vs. spy drama between
to
Mr.
King
March
had never
heard of
and
thea
United
States and 2012
Cuba that email,
flourishing
in
and corporate
lob-in
“I’m
in theMs.
lobby, near
the re- trial lawyers
with a in
proposed
lawsuit
did
not
citeSingany
The
lawsuits
follow
pattern:
Private
lawticals
to
snack
foods.
Mr.
Sarraff’s story
orney general
played
on long afterathe
end of
gate
and
sue,that
which
he
did.
COURTING
FAVOR
influence
these
officials.
ception
desk,”
Mr. King later re- byists to
By ERIC LIPTON
the Cold War and
years
after
plied, signing
the
message
“GK.”
Much
as set
big industries
to
up
ahave
meeting.
“I
finally
gotand
Pitch never set foot
er The
had
in.
She
later
in plaintiffs’
apublic
spy vs. spylaw
dra
specific
complaints
yers,
who
scour
the
media
Cuba ceased
tonews
be a a
serious
WASHINGTON
The
lawsuits
follow
pattern:
natural
allies
in Republican
The is
casual
nature of the
lumbia,
wrote —toWhen they
The partnership
part
ofex- afound
threat to the
Unitedcorporate
States. The
met at the J. W. Marriott Hotel
attorneys
general
to combat
fed-lawyers
the
United
States
an
change
between
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and
lob“I’m
in
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rethe
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she shared with him
were
numabout
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looking
potential
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a gener
regulations,
plaintiffs’
law- storyfor
two blocks from the White House,
crats,
which What
was amongshe
thou- eral records
Private
lawyers,
who
scour
theinplayed
March 2012
email, FAVOR
flourishing
that
pairs
on long after
a sketchy outline,
with officials.
Mr.
bers on staffing levelsindustry
gleaned
byists
tojustinfluence
these
yerslater
workingreon a contingencyception
desk,”
Mr.
King
LindaCOURTING
Singer, a former attorney
sands of pages
of emails
obtained
Trujillo apSarraffwould
hidden from
public
view
from recordsthat
suggestingdid
that res-not
home
case
and
love
toRolando
dis-Sarraff
collabo
lawsuit
cite
any
spehave teamed
up
mostly
turned plaintiffs’ lawyer,
by The
New York
Times,
belied fee basis
shared
with
him
were
state
or
its
consumers
have
been
thenies,
Cold aWar
and
news
and
records
plied,
signing
the
message
“GK.”
Much
as bigpublic
industries
haveharmed,
idents were beinglawyers
mistreated
ng. “I general
finally
got General
with Democratic
statemedia
attorneys
The Pitch
approached
Attorney
plaintiffs’
with
state
atthe enormous
potential
payoff
for
therecomplaints
and at other facilities.
general
to
file
hundreds
of
lawGary
King
of
New
Mexico
with
Ms.
Singer’s
firm
if
she
could
perCuba
ceased
to
be
off
a
furious
co
cuss
it
with
you
briefly.”
cific
about
care.
What
numbers
on
staffing
proach
attorneys
general.
The
attorneys
genen theyan unusual proposition.
found
natural
allies
in
Republican
The
casual
nature
of
the
exlooking
potential cases in
businesses for
that
“Do you have general
10 minutes at any suade
Mr.
King to compahire her and suits against
n
the
nursing
torneys
to
sue
make
anything
from
pharmaceuthreat
to
the
United
point
today?”
Ms.
Singer,
who
use
his
state
powers
to
investiMs.
Singer
wanted
him
to
sue
tt Hotel
general
to
combat
fedchange
betweenfrom
the two
DemoFocusing
on
Itsdo
Future,
Nation
levels
gleaned
hireattorneys
private
to
the necessary
ticalseral
towhich
snack foods.
the owner of a nursing home in had served as attorney general in gate and sue, which he did.
athe
state
or firms
itsplaintiffs’
consumers
would
disstory — at this point
nies,
a
collaboration
that
has
shared
with
him
were
numThe lawsuits
follow aeral
pattern:
regulations,
lawHouse,love
the District
of
Columbia,
wrote to
crats,
which
among
thourural she
Newto
Mexico
that Mr.
King
The partnership
iswas
part ofset
a
records
suggesting
residents
were
being work,
with
theLeaves
understanding
that tothe
firms
lawyers, who
scour the
Mr. King inthat
a March 2012
email, flourishing
Fidel
Castro
History
never
heard
of and
Ms. Sing- tolevels
industry that pairs Private
just
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bers
on
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gleaned
yers
on
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sands
oflawyers
pages
ofstate
emails
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recordsworking
offto a
furious
competition
between
riefly.”had
Continued
on
Page
A24
set up
a meeting. “I finally
got
er had never set foot in. She later
plaintiffs’
with
at- news
mistreated
there
and
at
other
facilities.
will
front
most
of
the
cost
of
the
investigation
looking
for
potential
cases
in
the
numbers
on
the
nursing
presented
him
with
a
proposed
torneys
general
to
sue
compaSarraff
hidden from—
from records suggesting that res- by The New York Times,
fee
basis
have
teamed
up
mostly
lawyer,lawsuit
HAVANA
belied
that did not cite any spe- home case and would love to dis- nies, a collaboration that has set which a state or its consumers
By DAMIEN CAVE
“Do
you
have
10
minutesthe
at
anycompetition
point
to- payoff
and
the
litigation.
The firms
take They
a fee,
typically
idents
were
being
mistreated
offenormous
a furious
between
cuss it with
you briefly.”
Continued
on Page
A24
about
care.
What
with
Democratic
state attorneys
Generalcific complaints
potential
for
said nothingdents
of Fidel.
HAVANA — The college stuof a su
At a moment described by
of
a surprised
Cuba sangof lawthere and
at other
facilities.
tothe
file
hundreds
co with day?”
Ms. Singer’s
firm if she could
per- general
Ms.
Singer,
who had served
as attorney
20 percent,
anddents
state
takes
the
rest
ofto any
the colkaraoke on Thursday afternoon many as an equivalent
karaoke
on T
suits against
businesses
that
of the Berlin Wall, the abbeside a dark green
tank memo- lapse
“Do you in
have
10 minutes
at any
suade Mr. wrote
King toto
hire her
and won
general
the
District
ofaColumbia,
money
from
the
rializing
the defendants.
Cuban revolution. sence of Fidel Castro — he has
U.S.
Plans
Suit
A
Salute
to
Pioneer,
From
a
Card-Carrying
Fan
beside
and has not a dark
m to sue point today?” Ms. Singer, who use his state powers to investi- make anything
They played from
dominoespharmaceuin the said nothing about it,
publicprivate
for months —
to
Mr.
King
in a March
email,
to which
set up
While
prospecting
for contracts,
the
of the University
of Ha- appeared in
ticals
toshade
snack
foods.
hadConditions
served
as attorney
general 2012
in gate
and
sue,
he
did.
home in Over
spoke
volumes.
For
many Cuvana law school, where Fidel
rializing
the
When you grow up with a sinitthousands
confirmed that Fidel, perCastro found
his footing tens
as pattern:
a bans,
athe
meeting.
“I
finally
got
the
numbers
on
the
lawyers
have
also
donated
of
of
The
lawsuits
follow
a
District
of
Columbia,
wrote
to
gular
focus, whatever
it is,
you
Mr. King At
The
partnership
is
part
of
a
haps by his own design, is slipleader with aup
pistol at
his side. a sinRikers Island may find yourself relating to Will
When
you
grow
with
They
played
further into the past, into
When asked about
the individual
historic
Private
lawyers,
who
scourpingthe
to Mr. Kinghome
in a March
Ms. Sing- nursing
industry
pairs to
case
andemail,
love to discuss
it thatdollars
campaigns
of
attorneys
Ferrell’s 2012
character
inwould
“Elf.” Ex- flourishing
shift by the United States to ease history, at a time when his applaining his eating habits to his
gular
focus,
whatever
it
is,
you
shade
proach
to the United
States of the
news
media
and
public
records
its trade embargo and pursue
toarticle
set you
up
meeting.
“I
finally
got
he later Thiswith
plaintiffs’
lawyers
with
state
atis byaBenjamin
new
family,
the
man-child
from
briefly.” the North Pole says
general, as well
as party-backed
organizations
to be fading as well.
normalized
relations with Cuba, seems
Weiser, Michael Schwirtz and
looking
for
potential
cases
in
“It’s
a
break
with
the
past,
and law
the
numbers on TYLER
the he nursing
roposedMichael
general to sue compamaythey
findrun.
yourself
to
Will
they spoke relating
first of what it meant
vana
sc
Winerip.
sticks to the four
said in
Jorgelarge
Luis Riv“I’m
in
the lobby,
near
thetorneys
reception
desk,” that
often
come
the donations
Cuban
people,
then
of a transition,”
w
upspewith
a prosecutors
sinwhich The
afor
state
or
its
consumers
main to
fooddisgroups: nies, a collaboration that has set
Federal
plan towould love
home
case and
any
ero
González,
26,
a
master’s
stuwhat it said about
President
Oba- ExFerrell’s
character
in
“Elf.”
KEPNER
Castro
found
candy,
candy
canes,
New York City over widein information
ma, and finally,
aafter
few mentioned
Mr.
King
later
replied,
signing
“GK.” between
chunks just before
oron
the
firms
signtechnology.
concandy
corns and syr-the
off amessage
furious competition
cuss
it with
youinbriefly.”
Continued
PageRaúl
A24 dent
e. What
ever
itsue
is,
you
spread
civil
rights
violations
“What we have now is hope for a
the boldness of
President
up.
plaining
his
eating
habits
to
his
the handling of adolescent inHAVANA
— The
leader
with
ap
Castro.
Continued
onfinance
Page
A17
The
casual
nature
the
tracts
to
represent
the
state,
campaign
Forof
me, the
diet exchange between
mates
at
Rikers
Island,
making
relating
to Will
by Benjamin new family, the man-child from
was baseball,article
baseball games, is
dents When
of a surprised
clear their dissatisfaction with This
aske
pitching. That
theExtwoin reining
Democrats,
which
was among thou- records and more than 240 contracts examined
the city’s
progress
in baseball cards and
karaoke on Thursda
er in “Elf.”
was my sustenance,
and I supbrutality by
guards and improvWeiser,
Michael
Schwirtz
and
the
North
Pole
says
pose
I
should
thank
Sy
Berger
for
shift
by
the
U
In Region, a Wedge Is Removed
ing conditions
at the
sands
ofjail complex,
pageshisof
emails obtained by The New
by The Times show.
beside a dark green
role as a vendor. I emptied my
g habits
a new to
court his
filing shows.
Michael
Winerip.
pockets of quarters and singles,
hegotten
sticks out
to the
The
decision Times,
to go to court
rializing
the Cuban
itsScott
trade
em
York
belied
the enormous potential pay“This has
of four
hand,” said
comes more
than four months af- and he filled my soul with baseman-child
from
By SIMON ROMERO and WILLIAM NEUMAN
They
played
domin
ter the office of Preet Bharara, ball, one 3›-by-2›-inch slice of
main
food
groups:
normalized
re
a sweeping
détente
with
BUENOS
AIRES — President
off
forattorney
Ms.forSinger’s
if she could persuade
Democrat
whoclaring
was
the
attorplan to Harshbarger, aObama
cardboard atfirm
a time. prosecutors
the United
States
the Federal
orth Pole
says
the Univer
the way forof
a mahas been lambasted for Cuba, openingshade
Berger, the longtime Topps exSouthern District of New York, isSy Berger, who died Sunday, brought whimsy to baseball cards.candy,
candy
canes,
jor
repositioning
of
the
United
spying
in
Brazil,
accused
of
being
they
spoke
fir
King
tocited
hire
her
andYork
his
state
powers
to
ney general of
Massachusetts in the
ecutive
considered
theuse
father of
sued Mr.
a blistering
report that
sue
New
City
over
widevana1990s,
law school, w
a warmonger by Bolivia, dis- States in the region.
cks to the
four
the
modern
baseball
card, died
a pervasive
and you
“deep-seated
When
grow
up
with
a sinhis career win total. I scored it for
should be handled with care. We
Washington’s
isolation of Cuba
missed as afirst
“lost opportunity”
by into
candy
corns
and
syrSunday atwhich
91. I never knew
culture
of violence” directedand
at on sue,
Castro
found
his fo
investigate
he
did.
when
this
practice
burst
prominence
for
the Cuba
spread
civil
rights
violations
in
$75 from a friend who had a new
were not the generation that
Argentina, and taunted in Nic- has long been a defining fixture
gular
focus,
teenage
inmates
at Rikers.whatever
him, butit
oh,is,
did you
I know his work.
food groups:
ON
driver’s license
and needed gas
flipped them or put them in our
politics,with
some- a pistol at
aragua by calls for Latin America of Latin American
leader
No
marketing
vice
president
The report The
found rampant
use
up.
partnership
isdevised
part
of abicycle
flourishing
inas
a result ofto the
what
it said ab
spokes. We would have
may force
findbyyourself
relating
Will
thecould
handling
of
adolescent
in- money.
thing that has tobacco
united
governdraw up litigation
its own list of state against
of excessive
correction
ever haveto
a better
BASEBALL
, candy
canes,
disowned our mothers had they
asked about
But I never really understood
region, regardsponsors of terrorism — with the ments across the When
officers,
the overusecharacter
of solitary way
to“Elf.”
sell baseball
to the
Ferrell’s
in
ExFor
me,
the
diet
dustry
that
pairs
plaintiffs’
lawyers
with
state
companies.
“And
it
seriously
threatens
the
thrown
our
cards
out
with
the
the
mass
speculation
as
the
’80s
less
of
their
ideologies.
Even
ma,
and
finall
United
States
in
the
No.
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ma,Mike
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e now increasing
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ng
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Mississippi, also
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ss
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nd the
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hat
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ely
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e
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e
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rt,
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ompachance
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ished
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riven
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torney
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o
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ed
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rors
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w
Mr.
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Hood
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onofrunning
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running
cient
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King
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n
inby
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arors
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aaoffice
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attorney
General
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General
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fees
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all,
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im
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office
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in
astate
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liju
Hood
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highest
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insel
JS
of
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eTimes
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topitches,
TransUnion
inoffice
July
2013.
rors
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during
the
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of
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riod.
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herself
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ing
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o,
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000
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nt
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field
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In
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of
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pitch
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ing
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Over
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claims
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attorneys
general
and
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groups
em
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rors
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ears
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sued
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TransUnion
in
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2013.
of
pitches,
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ame
ed
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rails
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c
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ing
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Over
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mbled
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aby
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our $395,000
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ed at least
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e than
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his
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ed
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th
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Over
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rom
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ed
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Over
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ley
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2013.
state
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as much as Mr. Hood has spent on running his
state office during the same period.
Mr. Hood has taken in $395,000 in campaign
contributions from trial law firms over the last
decade, more than any other attorney general.
In one case, a senior partner at the Houston-based firm Bailey Peavy Bailey donated
$125,000 to Mr. Hood after the firm filed a lawsuit on behalf of the state against Eli Lilly, the
pharmaceutical company, litigation that in 2010
generated a $3.7 million payment to the outside
lawyers. Mr. Hood has now signed a second
contract with the firm, to sue the drug company
Bristol-Myers Squibb.
Mr. Hood’s office rejected any suggestion
that the contracts are given out in exchange for
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 office said in a statement.
Over all, plaintiffs’ firms have donated at
least $9.8 million directly to state attorneys
general and political groups related to attorneys general over the last decade, according
to an analysis of campaign finance data by The
Times, with more than 76 percent of that money
going to Democrats.
The financial benefit to Mississippi’s treasury is also clear. Mr. Hood’s office has brought
in $400 million over the last decade from lawsuits filed with the help of outside lawyers,
state records show.
The boom in the contingency law business
has been driven in part by former attorneys
general like Ms. Singer who have capitalized on
personal relationships with former colleagues
that they have nurtured since leaving office,
often at resort destination conferences where
they pay to gain access.
Ms. Singer herself has made dozens of
pitches, presenting attorneys general with a
shopping list of possible litigation topics, like
defective highway guardrails and abuses by forprofit colleges, emails show.
“I fear that I’m now stalking you with my
voice mail messages and thought I’d switch media,” Ms. Singer wrote in an email late last year
to the Washington State attorney general’s office.
“Do you have time to talk in the next few weeks?
I’d love to pick up the thread of our conversation
and get your reaction to the cases we suggested.”
Mr. King and other attorneys general say
lawsuits against major corporations or industry sectors can require the hiring of expert witnesses and produce hundreds of thousands of
pages of documents that must be reviewed. All
of this comes at a high cost, and outside lawyers can foot the bills upfront.
“It’s one of the only tools I have to level the
playing field on behalf of consumers, given the
significant financial firepower that big pharma,
big banking and any number of other industries
have,” Mr. King said. “The attorney general is
virtually the only protection the consumer has
against abuse by those industries.”
But some of his colleagues remain sharply
critical of the practice.
“Farming out the police powers of the state
to a private firm with a profit incentive is a very,
very bad thing,” said Attorney General John
Suthers of Colorado, a Republican and a former
United States attorney.
A Lawyer’s Plea
For Ellen F. Rosenblum, a Democrat who
was the newly elected attorney general of Oregon, November 2012 had been a particularly
busy month. She was investigating allegations
of ballot tampering, and, on a personal level, her
daughter’s wedding was approaching.
But Ms. Singer was determined to get on the
attorney general’s calendar to pitch her cases.
“I am delighted to be able to write with
congratulations on your election, as well as
a more mundane follow-up,” Ms. Singer said
in an email during the Thanksgiving holiday
weekend in 2012. “I am eager to pick up our
conversation at your convenience.”
The exchange echoed pleas that Ms.
Singer sent to attorneys general — almost all
Democrats — in Arizona, Connecticut, Nevada,
New Mexico, New York and Washington State
as she worked to team up with them on major
civil cases with her firm, Cohen Milstein. Many
of the pitches generated no new deals. Ms.
Rosenblum, for example, has not given her a
contract so far. But a single case can generate
millions in payments to her firm.
Though Ms. Singer, 48, served just a year as
attorney general in the District of Columbia, she
had a long prior tenure in public service jobs,
and she referred to her work at Cohen Milstein
tionships with former colleagues that
they have nurtured since leaving office,
often at resort destination conferences
not an individual makes a campaign
contribution during an election cycle
has no bearing on any decisions made
Political Gifts from Plaintiffs’ Lawyers
Plaintiffs’ law firms, which commonly team up with Democratic state attorneys general
to file lucrative lawsuits against businesses, are often also major political donors.
Below, amounts that firms — identified from records in 13 states — have contributed,
at a minimum, over the past decade through four different channels.
Where the Money Goes
RECIPIENT
CONTRIBUTIONS FROM LAW FIRMS SINCE 2004
Attorneys general
associations
Dem.
Political organizations supporting
the election of attorneys general
Rep.
Candidates
$1,570,000
To candidates currently in office
Includes incumbents, challengers
and candidates for open attorney
general seats
Dem.
State party committees
Dem.
In 24 states
Rep.
Attorneys general
running for governor
Dem.
Contributions to campaigns
$3,797,000
ments that must be revie
comes at a high cost, an
yers can foot the bills upf
“It’s one of the only
level the playing field on
sumers, given the signi
firepower that big pharm
and any number of ot
have,” Mr. King said.
general is virtually the
the consumer has aga
those industries.”
But some of his coll
sharply critical of the pra
“Farming out the polic
state to a private firm w
centive is a very, very b
Attorney General John S
rado, a Republican and a
States attorney.
Rep.
Rep.
A Lawyer’s Plea
$1,959,000
$240,000
$1,481,000
$445,000
$288,000
$75,000
Where the Money Comes From
AMOUNT
CONTRIBUTED
SINCE 2004
TOP CONTRIBUTORS
LITIGATION
AREAS INCLUDE:
Bernstein Litowitz Berger & Grossmann
Securities
$1,449,000
Labaton Sucharow
Securities
1,239,000
Kessler Topaz Meltzer & Check
Prescription drug
marketing, securities
1,038,000
Kaplan Fox & Kilsheimer
Securities
847,000
Grant & Eisenhofer
Securities
533,000
Baron & Budd
BP oil spill, credit card
industry, M.T.B.E., prescription
drug marketing
490,000
Bailey Peavy Bailey
Prescription drug marketing
460,000
Chitwood Harley Harnes
Securities
400,000
Nix Patterson & Roach
BP oil spill, securities
300,000
Entwistle & Cappucci
Securities
295,000
Notes: Numbers are rounded to the nearest thousand. Firm names are as of the latest contribution made. The firms
included in contribution totals are those that were found to have contracted with at least one of the following 13
states that had records available: Arizona, Arkansas, Kentucky, Louisiana, Maryland, Mississippi, Nevada, New
Mexico, Ohio, Oregon, Pennsylvania, South Carolina and Washington.
The Republican Attorneys General Association figure includes contributions to the Republican State Leadership
Committee, which it broke off from in Jan. 2014.
Sources: CQ Roll Call; National Institute on Money in State Politics; state governments
THE NEW YORK TIMES
For Ellen F. Rosenblu
who was the newly el
general of Oregon, Nove
been a particularly bus
was investigating allega
tampering, and, on a per
daughter’s wedding was
But Ms. Singer was de
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pitch her cases.
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with congratulations on
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Ms. Singer said in an em
Thanksgiving holiday w
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at your convenience.”
The exchange echoed
Singer sent to attorneys
most all Democrats — in
necticut, Nevada, New
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worked to team up with
civil cases with her fir
stein. Many of the pitche
new deals. Ms. Rosenblu
has not given her a contr
single case can genera
payments to her firm.
Though Ms. Singer, 48
year as attorney genera
of Columbia, she had a lo
in public service jobs, an
to her work at Cohen Mi
tension of her commitm
the public good.
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anything we do here,” sh
terview in her Washingto
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ing of expert witnesses and produce
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ments that must be reviewed. All of this
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plaint, which named Preferred Care Partners
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Management Group of Plano, Tex., among othcontract pressing similar claims.
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In many
those cases,
Ms.
Singer’s
firepower
big pharma,
big banking
legal theory, at least of
initially,
had a ge- of One
night last
week at
restaurant
mistreatment
patients,
based
onthe
“confiandWashington
any numberoffice.
of other industries
neric
quality.
In
New
Mexico,
she
and
Rosa
Mexicano
in
Washington,
as marhave,” Mr.
King
said.
“The
attorney
Hers is an expansive portfolio of cases. Mis- dential witnesses.”
the
state
ended
up
suing
a
different
garitas
flowed
and
trays
of
shrimp
and
general is virtually the only protection
sissippi hired her to handle an investigation
by
Mr. based
King acknowledged
that were
the lawsuit
re- netcompany altogether
— one
in
chicken skewers
passed, the
the consumer has against abuse by
theindustries.”
state of the credit ratings agencies
liedPennsylvaniaon a novel claim,
developed
through the use
Texas,Experian
instead of the
work
between contingency-fee
lawyers
those
chain
that Ms. of
Singer
had identiand Democratic
attorneys
general was
andsome
TransUnion,
which was
basedbased
on an
allegaBut
of his colleagues
remain
a software
program,
that estimated
resident
in a draft complaint she initially
on vivid display.
sharply
critical
of the
practice. included fied
tion that
they
knowingly
errors intotheir
harm based on the ratio
betweenwas
nurse’s
provided
Mr.
King.
The restaurant
closedaides
for a pri“Farming out the police powers of the
credit
files.
The
relationship
was
made
clear
in
and
residents.
But
Mr.
King
said
that
because
“We
go
where
the
evidence
leads,
and
vate
holiday
party
hosted
by the Demostate to a private firm with a profit inno
place2013.
else,” Ms.Cohen
Singer Milstein
said, ex- was
cratic
Attorneys
General
a subpoena
to thing,”
TransUnion
in July
covering
most
of theAssociation.
cost,
centive
is a very,issued
very bad
said
plaining
the
change.
These
plaintiffs’
firms
Attorney
General John
Suthers
“Please
direct
anyof Coloquestions regarding there was little risk to the state, addinghave
thatdonated
he
The new case still relies primarily on
more than $3.8 million to the group over
rado,
a
Republican
and
a
former
United
our requests or your production to
our outside
was receptive
of what
the approach
last decade,because
money that
has been
a calculation
suggesting
that the 11to this
States attorney.
on in chunks
to of
Democrats
nursing
homes did he
not said
havehad
enough
counsel,” said a cover letter on the
subpoena,
been apassed
disturbing
pattern
abuse to
helphomes.
them with their re-election bids.
members.
complaint,
emblazoned
with the state seal. staff
It also
listed Butin the
his state’s
nursing
A Lawyer’s
Plea
which named Preferred Care Partners
Ms. Singer, along with lawyers from
Ms. Singer’s telephone number Management
and address
in America
a good
way the
Group of “The
Plano,court
Tex.,system
at least
nine otherisfirms,
worked
For Ellen F. Rosenblum, a Democrat
in Washington, in addition to information
for ais now
to backed
determine
if that
is achatting
sufficient
argument,”
among others,
up with
crowd,
up the
attorneys genwho was the newly elected attorney
specific
allegations of
mistreatment
stateofofficial
to supervise
the case.
Mr.
King said.of eral from Vermont, Virginia and other
general
Oregon,helping
November
2012 had
patients, based on “confidential witstates, while Marlon E. Kimpson, a lawbeen a Nevada
particularly
busy
She2009,
hired
hermonth.
firm in
under a conMs. Singer’s firm
does not have the field to
nesses.”
yer from Motley Rice, which focuses on
was
investigating
of ballot broad mandate:
tract
that hadallegations
an exceptionally
itself. Former attorneys general, including Patritampering, and, on a personal level, her
to seekwedding
compensation
for anyone
daughter’s
was approaching.
in Ms.
the Singer
state was
who
was harmed
But
determined
to get as
on atheresult
attorney
general’s
calendar
to
of fraudulent mortgage
pitch her cases.
lending practices. And Ms. Singer
“I am delighted to be able to write
negotiated
a settlement
with Bank
with
congratulations
on your election,
as of
wellAmerica
as a morethat
mundane
follow-up,”
generated
an exMs.tra
Singer
said
in
an
email
during
the
$38 million for Nevada, and
Thanksgiving holiday weekend in 2012.
$5.6
million
forupher
— reflect“I am eager
to pick
our firm
conversation
ing aconvenience.”
15 percent fee.
at your
The exchange
echoed
that Ms. in
She was
alsopleas
successful
Singer
sent
to
attorneys
general
— al-case
adding to her nursing home
most all Democrats — in Arizona, Conin New
Mexico
by Mexico,
persuading
necticut,
Nevada,
New
New the
York
and
Washington
State
as
she
attorney general of Pennsylvania
worked
to
team
up
with
them
on
major
to sign a contingency-fee contract
civil cases with her firm, Cohen Milpressing
claims.
stein.
Many ofsimilar
the pitches
generated no
In Ms.
many
of those
cases, Ms.
new deals.
Rosenblum,
for example,
BENJAMIN RUSNAK FOR THE NEW YORK TIMES
hasSinger’s
not given her
a
contract
so
far.
But a inilegal theory, at least
BROKER Patricia A. Madrid, a former New Mexico attorney general,
single case can generate millions in
tially, had a generic quality. In with her husband, Mike Messina, helps law firms get state business.
payments to her firm.
New Mexico,
and the
Though
Ms. Singer,she
48, served
just state
a
year
as attorney
generala indifferent
the District
ended
up suing
comof Columbia,
she had a long
pany altogether
— prior
one tenure
based in
in public service jobs, and she referred
Texas,
instead
of
the
Pennsylvato her work at Cohen Milstein as an exnia-based
chain that toMs.
Singer
tension
of her commitment
serving
thehad
public
good.
identified
in a draft complaint
“There
is not aprovided
bit of shame
about
she initially
to Mr.
King.
anything we do here,” she said in an in“We
go
where
the
evidence
terview in her Washington office.
leads,isand
place else,”
Ms. Singer
Hers
an no
expansive
portfolio
of
cases.
hired
to handle
said,Mississippi
explaining
the her
change.
an investigation by the state of the credThe new case still relies pri- CROWDED FIELD From left, former Attorneys General Peg Lautenit ratings agencies Experian and Transmarily
onwas
a calculation
suggest- schlager of Wisconsin, Mike Moore of Mississippi and Steve Six of
Union, which
based on an allegationing
that
they
knowingly
included
er- did
Kansas, who have helped pursue or strike deals with states on suits.
that the 11 nursing homes
cia A. Madrid of New Mexico, Walter W. Cohen of
Pennsylvania, Grant Woods of Arizona, Patrick
C. Lynch of Rhode Island, Steve Six of Kansas,
Drew Edmondson of Oklahoma, Peg Lautenschlager of Wisconsin and Mike Moore of Mississippi, have also pursued or struck deals with
states, documents obtained by The Times show.
Several of them work simply as brokers, earning
a commission just for helping to pitch a case.
Ms. Madrid has flown around the country
with her husband (also a lawyer), acting as a
broker to solicit business. They traveled early
this year to Vermont on behalf of the Texasbased law firm Baron & Budd and successfully
pitched the firm to the staff of the attorney general, an old friend, to represent the state in a
lawsuit against oil companies over allegations
that a fuel additive caused groundwater contamination. Ms. Madrid will earn a fee for helping to sell the job.
“It just gives credibility when you are dealing with someone that you know,” Mike Messina, Ms. Madrid’s husband, said this month
while sitting on a couch in the lobby of the RitzCarlton hotel in Fort Lauderdale, Fla., where
the couple were attending a dinner for newly
elected attorneys general. “It gets you past a lot
of difficult questions.”
Vermont’s attorney general, William H. Sorrell, said he first developed a friendship with Ms.
Madrid when they traveled to Israel together as
part of an official delegation of attorneys general. He acknowledged that Ms. Madrid played
a role in pitching the case, but said he agreed to
the deal only because it will help Vermont bring
in the largest possible recovery.
“An office my size to take on a major company or a whole industry, like the oil industry,
is David versus Goliath, times 10,” said Mr. Sorrell, who has a staff of about 80 lawyers.
‘Like a Family Party’
One night last week at the restaurant Rosa
Mexicano in Washington, as margaritas flowed
and trays of shrimp and chicken skewers were
passed, the network between contingency-fee
lawyers and Democratic attorneys general was
on vivid display.
The restaurant was closed for a private
holiday party hosted by the Democratic Attorneys General Association. These plaintiffs’
firms have donated more than $3.8 million to
the group over the last decade, money that has
been passed on in chunks to Democrats to help
them with their re-election bids.
Ms. Singer, along with lawyers from at least
nine other firms, worked the crowd, chatting
up the attorneys general from Vermont, Virginia and other states, while Marlon E. Kimpson, a lawyer from Motley Rice, which focuses
on securities litigation, introduced himself to
the new attorneys general from Maryland and
New Mexico. The event was co-sponsored by
the law firm Kaplan Fox, which just secured a
multimillion-dollar payout after suing the mortgage giant Fannie Mae on behalf of the State of
Tennessee.
“It was like a family party,” said one lawyer
who attended and who requested anonymity because it was a private event.
That is precisely the kind of coziness that
has driven corporations to marshal a counteroffensive by challenging on multiple fronts attorneys general who hire contingency lawyers.
Darrell McGraw, who collected more than
$2 billion worth of settlements in partnership
with contingency-fee lawyers during his tenure
as West Virginia’s attorney general, was one of
the early targets.
“McGraw diverted millions to pet projects
and to campaign donors he hired,” said one 2012
television advertisement during his re-election
campaign, a reference to a settlement his office had negotiated with Purdue Pharma over
its sale of painkillers. That deal included a $2
million payment to contingency-fee law firms
whose partners were past campaign donors.
His campaign bought its own advertisement defending his efforts, as did an independent group called the Mountaineer Committee
for Justice and Fairness that is funded in part
by plaintiffs’ lawyers.
But Mr. McGraw said the assault was overwhelming, and he was defeated after two decades in office.
“They are simply able to eliminate people,”
Mr. McGraw said.
The attempts to push back have come in
federal and state courts as well. Companies as
diverse as Diamond Foods, the snack food maker, and Merck, the pharmaceutical giant, have
filed lawsuits or counterclaims arguing that the
attorneys general improperly turned over state
law enforcement powers to private parties, cit-
uced himself
eneral from
o. The event
aw firm Kapred a multir suing the
e on behalf of
rty,” said one
who requestwas a private
d of coziness
ns to marshal
allenging on
general who
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should
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As Gov. Bobby Jindal signed the
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general’s
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Jindal
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stateMartinez,
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af- from
for
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this
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was
again
as
legislation
the
theIn
most
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cessful,
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the
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cases
to
state
But
the
grass
roots
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As fairs
Gov.
Jindal
signed
have
also been
placed
on fees.
Ms.
Rickard
referred
to as
the chamatBobby
Pharmaceutical
Researchthe
and
year
in Louisiana,
where
Attorney
genera
the
award
—
a small
glass
gavel that
senior
director
for state
government
affor isthe
corporate
lawyers
came
this Genfact,
been
receptive
to the
argument.
intensive
part
of the
at
state has
yetap
latures
the
ber’s
version
of the Oscar
— was2012,
be- as
Manufacturers
of America,
stoodthe
di- allies.
eral
Buddyimportant
Caldwell,
a victory
Republican,
has
Mr.campaign.
Martinez
wasSince
there
again
legislation
in June, Pete
Martinez,
Perhaps
the
most
cases
Ms.
Rickard
referred
to
as
the
chamfairs
at
Pharmaceutical
Research
and
year
in
Louisiana,
where
Attorney
Gen“The
cham
e campaign.
genera
stowed.
rectly
behind
the
governor,
with
a
slight
collected
$294
million
in
settlements
award
— aofsmall
glassrules
gavel
that
senior
director
forofstate
government
for
the
corporate
lawyers
came
this
Judge
William
Alsup
Federal
District
leaststood
14 afstates
have
adopted
new
that
state
h
ber’s
version
the
— not
was
beManufacturers
America,
di- the
eral
Buddy
Caldwell,
a Republican,
has of
s have
adopthigh, cases
attorne
Plaintiffs’
lawyers
saidOscar
they
were
smile.
since
2011
against
pharmaceutical
comt
Ms.
Rickard
referred
to
as
the
chamfairs
at
Pharmaceutical
Research
and
year
in
Louisiana,
where
Attorney
Gen“Th
Court
for
thethein
Northern
District
California,
generally
require
attorneys
general to make there
a state
stowed.
rectlyofbehind
thethese
governor,
with aget
slight
collected
$294
million
settlements
y require
atis a cos
surprised
by the onslaught.
“The
way
issues
really
done
panies
with
help
of outside
law
ha
version
of results,
the Oscar
was
Manufacturers
stood
dieral
Buddy
Caldwell,
a Republican,
has
high,
side counsel,”
Plaintiffs’
said
were
not
smile.isBill
“You
look
at lawyers
the
andthey
I—
can
see besince
2011
against
pharmaceutical
coma result
ofoftheAmerica,
grass-roots
effort,”“finding
Lisa ber’s
firms,
which
in turn have
earned
$54
who
was
appointed
by
President
Clinton,
specific
of
need
for
outside
counsel”
“The
stowed.
rectly
behind
the
governor,
with
a
slight
collected
$294
million
in
settlements
why
the business
A. Rickard,
theissues
head of
the U.S.
the
million
fees. The
legislation,
Mr. Cald-“The
esearch.
there
surprised
by thecommunity
onslaught.is organ- something
these
really
getChamdone
panies with
the inhelp
of outside
law
wrote
last
year
that comcases
filed
byway
attorneys
and often
to have
an open
competition
for the
Plaintiffs’
said they
since
against
pharmaceutical
side c
“You looklawyers
at the results,
andwere
I cannot
see high,
is a result of the grass-roots effort,” Lisa
firms,2011
which
in turn
have earned
$54 smile.
surprised
by the onslaught.
way these
issues
getChamdone
panies
the
help
of outside
law
why the business
community is organ- there
A.“The
Rickard,
the head
of really
the U.S.
sometis
million with
in fees.
The
legislation,
Mr. Caldside co
“You look at the results, and I can see
is a result of the grass-roots effort,” Lisa
firms, which in turn have earned $54
why the business community is organA. Rickard, the head of the U.S. Chamsometh
million in fees. The legislation, Mr. Cald-
work. In several states, limits have also been
placed on fees.
Perhaps the most important victory for the
corporate lawyers came this year in Louisiana,
where Attorney General Buddy Caldwell, a Republican, has collected $294 million in settlements since 2011 against pharmaceutical companies with the help of outside law firms, which
in turn have earned $54 million in fees. The
legislation, Mr. Caldwell said in a statement,
was devised by the companies to “restrict and
destroy the attorney general’s ability to hold
them accountable.”
As Gov. Bobby Jindal signed the legislation
in June, Pete Martinez, the senior director for
state government affairs at Pharmaceutical Research and Manufacturers of America, stood directly behind the governor, with a slight smile.
“The way these issues really get done is a
result of the grass-roots effort,” Lisa A. Rickard,
the head of the U.S. Chamber of Commerce’s
Institute for Legal Reform, said in October as
she presented an award to the business leaders
from Louisiana who led the fight.
But the grass roots had high-powered allies.
Mr. Martinez was there again as the award — a
small glass gavel that Ms. Rickard referred to as the
chamber’s version of the Oscar — was bestowed.
Plaintiffs’ lawyers said they were not surprised by the onslaught.
“You look at the results, and I can see why
the business community is organizing to fight
this,” said Blair A. Nicholas, managing partner
at the firm Bernstein Litowitz. “The attorneys
general are getting significant results. They
speak for themselves.”
The plaintiffs’ bar — and its allies in the offices of attorneys general — have tried to fight back.
Mr. Lynch, the former Rhode Island attorKitty Bennett contributed research.
ney general, who represents three of the nation’s largest plaintiffs’ firms, sent a confidential
appeal to half a dozen state attorneys general in
January, asking them to intervene in the matter
with the United States Supreme Court to protect
their ability to file federal securities fraud cases,
typically handled by outside lawyers.
“Based on our conversation last night, I
write to get confirmation that you will sign this
brief today,” Mr. Lynch wrote to Ms. Rosenblum,
the Oregon attorney general. He added that he
already had a tentative commitment from Mr.
Hood, as well as from Attorney General Bob
Ferguson of Washington State and Attorney
General Kathleen G. Kane of Pennsylvania, all
Democrats who have taken contributions from
the contingency-fee lawyers.
A spokeswoman for Ms. Rosenblum said
the contributions played no role in the decision.
Instead, her staff agreed to adopt the brief as
its own, after making some editing changes, because it agreed with it.
Still, the counterattack by big business has
had its impact. Ms. Madrid said some newly
elected Democrats were reluctant to hire outside firms, fearful that they were going to be
targeted for defeat in elections.
But the sales pitches are still taking place,
with Ms. Singer, in particular, urging attorneys
general to join her firm for a new round of possible cases, including ones against makers of
furniture that has a chemical additive that some
consider harmful, and drug companies that sell
certain painkillers. In fact, at least three former
attorneys general are pitching painkiller abuse
cases to states nationwide, although no state
has yet publicly signed up.
“The chamber has made the bar so high, attorneys general understand there is a cost politically to hiring outside counsel,” she said. “So
it is not something they do lightly or freely.” n