Legal News

Hung Jury for Last Two Fen-Phen Lawyers

By Dan Slater

William Gallion enters the Federal Courthouse in Covington, Ky., June 21, 2007. (Credit: AP/Ed Reinke)

This just in from Covington, Kentucky: After about six weeks of trial and 50 hours of jury deliberation, a mistrial was declared this afternoon in the trial of the two remaining Fen Phen defendants — Shirley Cunnigham and William Gallion. On Tuesday, the jury acquitted the third lawyer-defendant, Melbourne Mills.

“We were so hopeful that we were going to be acquitted,” Shirley Cunningham’s wife, Pat Cunningham, told the Law Blog this afternoon. “We do believe that after eight weeks of trial and eight days of deliberation there was plenty of reasonable doubt. I still maintain that the government did not prove its case. They gave away immunity like it was candy. And everything that was presented was refuted.” (Mrs. Cunningham, before her retirement, was a human resources administrator in the Nashville public school system. Now she owns and breeds race horses.)

Cunningham, Gallion and Mills were on trial in federal court for allegedly bilking their clients out of $65 million of a $200 million settlement over alleged injuries caused by the diet drug Fen Phen.

Shirley Cunningham Jr. enters the Federal Courthouse in Covington, Ky. , June 21, 2007. (Credit: AP/Ed Reinke)

A jury of seven women and five men told U.S. District Judge William Bertelsman they were “hopelessly deadlocked.” According to the Cincinnati Enquirer, lawyers for defendants Cunningham and Gallion immediately asked Judge Bertelsman to lower the bond of their clients, who have been at the Boone County jail since August. Cunningham’s bond is $45 million, and Gallion’s bond is $52 million.

“I think this case has a much larger agenda than was presented,” continued Mrs. Cunningham. “I don’t believe it was just about my husband and the defendants, but that plaintiffs’ lawyers are truly on trial. It’s a bad verdict for people who will not be able to afford representation. Because clearly if you look at this case, my husband and his partner were able to get their clients more money than they ever would’ve gotten in the national settlement.”

In a sign that Judge Bertelsman is up to date on fugitive news, he denied the defendants’ bond request, citing an earlier claim that the defendants posed a risk that they would move the allegedly ill-gotten gains offshore and flee to a country with no extradition treaty. Instead, Bertelsman ordered a retrial within 70 days.

“If the government decides to retry it — and it looks like they are — we’ll be back up here,” Cunningham’s lawyer, Tallahassee-based Stephen Dobson, told the Law Blog. “But from a defense standpoint, if the jury deliberated for eight days and can’t reach a verdict, it seems like that’s reasonable doubt in and of itself.

We placed a call to the U.S. Attorneys office in Kentucky and will let you know if we hear back.

Otherwise, have a fun and safe holiday weekend!

Full post as published by Law Blog - WSJ.com on July 03, 2008 (boomark / email).