Legal News

Fen-Phen Trial: Lawyer Claims He Was Too Drunk to be Found Culpable

By Dan Slater

When opening arguments began yesterday in the Fen-Phen lawyer trial down in Kentucky, the Law Blog expected finger-pointing to play a prominent role in the defense’s argument. What we did not expect were claims of drunken intoxication.

Shirley Cunningham (pictured, left), Melbourne Mills (center) and William Gallion (right) are on trial in federal court for allegedly bilking their clients out of $65 million of a $200 settlement over alleged injuries caused by the diet drug Phen-Fen. They’re charged with one count each of conspiracy to commit wire fraud, for which they could be sentenced to 20 years in prison if convicted. Here are Day 1 reports from the Courier-Journal and Herald-Leader.

As expected, attorneys for Cunningham and Gallion pointed the finger at Stan Chesley; the Cincinnati lawyer was paid $20 million to negotiate the settlement on behalf of the 440 plaintiffs in 2001. “The evidence will show that Shirley Cunningham relied on Chesley’s advice and had no reason to think Chesley wasn’t giving him good advice,” said Cunningham’s lawyer, Stephen S. Dobson III. Similarly, Gallion’s lawyer, O. Hale Almand, said Chesley “called the shots” and that one of Gallion’s associates was “the principal architect of the lawsuit.” (Almand also said the $200 million was four times as much as a mediator initially said the case was worth, and therefore exceeded the amount needed to compensate the plaintiffs).

But Mills had a different excuse. According to the reports, his lawyer, Jim Shuffett, told the 12-member jury, which was empaneled Monday, that Mills was hospitalized for an “alcoholic seizure” a month after the case was settled, didn’t take part in any court hearings and was too drunk at the time to be responsible.

On the government’s side, AUSA Laura Voorhee told the jury that the three lawyers committed “a case of unbridled greed.” She said the defendants’ goal was to “keep as much money as they could in their own pocket” and that Mills “sat back and laughed” when the other two described a plan to overcharge the clients.

Full post as published by Law Blog - WSJ.com on May 14, 2008 (boomark / email).