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Fraud Inquiry Looks at Lawyers in Diet-Drug CaseFrom: Dean Huffman . (dean@thehuffpeople.net)Sat Mar 24 10:30:27 2007
.. Fraud Inquiry Looks at Lawyers in Diet-Drug Case By ADAM LIPTAK LEXINGTON, Ky., March 22 — W. L. Carter knew there was something fishy going on when he went to his lawyers’ office a few years ago to pick up his settlement check for the heart damage he had sustained from taking the diet drug combination fen-phen. W. L. Carter, a fen-phen plaintiff, said he was angry about how he had been treated. “The greed got the best of them,” he said of his lawyers. The check was, for starters, much smaller than he had expected. And his own lawyers threatened to retaliate against him if he ever told anyone, including his family, how much he had been paid. “You will be fined $100,000, you will go to jail and you will be sued,” Mr. Carter recalled them saying. Mr. Carter was right to have been suspicious. The lawyers defrauded their clients, a state judge has ruled in a civil case, when they settled fen-phen lawsuits on behalf of 440 of them for $200 million but kept the bulk of the money for themselves. Legal experts said the fraud might be one of the biggest and most brazen in legal history. This week, several clients testified before a federal grand jury that has begun to investigate potential criminal wrongdoing arising from the settlement. ... http://www.nytimes.com/2007/03/24/us/24lawyers.html?ref=us
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