Lawyers Breached Contracts by Taking Too Much of Settlement

Plaintiffs’ lawyers who, along with consultants, pocketed $106 million out of a $200 million settlement in a diet-drug case, and diverted another $20 million to a nonprofit of which they were paid directors, will have to give some of the money back.  A Kentucky judge has ruled that the settlement breached the lawyers’ contracts with their clients by paying them more than their contracts permitted.

Under the settlement, the 431 injured clients split $74 million, or about $171,000 each, while the lawyers took home $20 million each.

[Frank Snyder]