Legal News

Retrial Begins in Wacky Fen-Phen Lawyer-Fraud Case

By Ashby Jones

Remember the wacky case that took place down in Kentucky last year involving the three plaintiffs’ lawyers accused of bilking clients out of settlement money? We can now present you with the sequel! As you undoubtedly recall, a jury deadlocked over the fate of two of the defendants, Shirley Cunningham (pictured, left) and William Gallion (pictured, right) and acquitted a third, Melbourne Mills (pictured, center). Yesterday, in federal court in Frankfort, Ky., the retrial of Cunningham and Gallion began. Click here for the story from the Louisville Courier-Journal; here here and here for previous blog posts.

Gallion and Cunningham have been charged with failing to distribute enough of a $200 million fen-phen settlement to their 440 clients. They have pleaded not guilty.

Last year’s six-week criminal trial was chock full of odd twists and turns. There were tales of drunken lawyers, charitable funds created for the benefit of the fen-phen attorneys, a judge admitting on the stand to being embarrassed by his handling of the case, and allegations of juror stalking.

Topping it all off is this fact: Gallion and Cunningham are the former owners of the racehorse Curlin, a Breeder’s Cup Winner and twice named Horse of the Year.

This trial is underway with a new judge, U.S. District Judge Danny Reeves. And both defendants are now free on bond. The previous judge, William Bertelsman, had kept the lawyers jailed through their trial last July.

Full post as published by Law Blog - WSJ.com on February 18, 2009 (boomark / email).