Thursday, April 30, 2009

Oversized Koster contribution may indicate "pay to sue" operation being contemplated in Missouri

A $25,000 contribution from a San Francisco-based personal injury law firm may indicate Missouri's Chris Koster is the latest attorney general being sounded out on a "pay to sue" operation, one of the newest wrinkles law firms have come up with to add to their bottom line.

A 48-hour filing with the Missouri Ethics Commission Wednesday shows Lieff, Cabraser, Heimann & Bernstein plunked $25,000 in Koster's campaign account April 27.

An article in the April 16 Wall Street Journal describes the "pay to sue" operation this way:

It's some racket. The plaintiffs attorneys come up with novel legal theories under which to sue companies or entire industries. They then solicit state AGs to retain them to bring cases on behalf of the government on a contingency-fee basis. Motley Rice and Lieff Cabraser are among the firms that have targeted drug companies as well as makers of cigarettes, paint and guns.

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