It seems the Hurrican Katrina is back in news once again, but from a legal point of view this time. Mr. Richard F. Scruggs, a leading plaintiff’s lawyer, has been found guilty in the Bribery Case in the The Mississippi federal court. He has been accused of an attempt to offer bribe of $50,000 for a favorable ruling in the dispute involving a $26.5 million settlement after Hurricane Katrina. It can be recalled that he was known as a leading plaintiff’s lawyers, after his successful battle against the tobacco industry in the 1990s. Scruggs was sentenced on Friday to five years. Also, the Mississippi federal court fined him $250,000 and ordered him to pay for the cost of his incarceration. Sidney A. Backstrom, a lawyer at Mr. Scruggs’s firm, was also found guilty and was sentenced for two years and fined $250,000.
The bribery prosecution stemmed from a lawsuit filed by John Griffin Jones, a lawyer in Jackson, Miss., against Mr. Scruggs and others, in which Mr. Jones contended he had been cheated out his share of a $26.5 million settlement in a case the two had filed against State Farm Insurance after Hurricane Katrina. Judge Lackey and another lawyer working with Mr. Scruggs, Timothy R. Balducci, discussed a bribe of $40,000. Then investigators confronted Mr. Balducci, who agreed to wear a recording device while he and Mr. Scruggs discussed the need to pay Judge Lackey an additional $10,000.
The ruling fas drawn a nation wide attention. Mr. Scruggs is known to be connected to both political parties. He has made many donations, largely to Democrats, and has personal ties to Republicans. He is known to be a skilled lawyer and debater. Mr. Scruggs and his co-conspirators are the latest in a string of prominent plaintiff’s lawyers who have been found guilty of misdeeds involving their clients or their lawsuits.
Source: The New York Times
Filed under Class Action, Settlements | Tags: Bribery Case, Class Action Lawyer, Hurricane Katrina, Lawyer, Settlement, State Farm Insurance | Comment Below
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