March 10, 2006
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.
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