| Fen-phen lawyers ordered to pay $62M
BURLINGTON - Three attorneys accused of bilking their clients in a diet drug settlement must repay at least $62.5 million, a judge ruled Friday. Special Judge William Wehr ordered William J. Gallion, 56; Shirley A. Cunningham Jr., 52, and Melbourne Mills Jr., 76, to repay $42 million taken from the settlement and $20.5 they put into a corporation, the Kentucky Fund for Healthy Living. The attorneys are being sued by about 400 former clients who claim the lawyers took too much as part of a $200 million fen-phen settlement. .
2 of 3 lawyers in fen-phen case appeal order they stay in jail
Two of three suspended lawyers accused of bilking clients out of millions in a diet-drug lawsuit settlement have appealed a federal judge's surprise decision that sent all three to jail last week. William Gallion and Shirley Cunningham Jr. filed notices of appeal yesterday in federal court in Covington. The appeal goes to the 6th U.S. Circuit Court of Appeals. Gallion, Cunningham and Melbourne Mills Jr. were indicted in June on one count each of conspiracy to commit wire fraud in connection with a $200 million diet-drug settlement. The indictment alleges that the three, who had practiced law in Lexington, took $64 million of the settlement that should have gone to 440 plaintiffs who sued diet-drug maker American Home Products. The plaintiffs alleged that the diet drug fen-phen damaged their hearts.
Civil case to wait on federal trial
A judge has postponed the trial of a lawsuit filed against two minority owners of Preakness winner Curlin and a third lawyer charged with bilking clients out millions of dollars in a fen-phen lawsuit. In a ruling issued Monday, Special Judge William Wehr postponed the civil trial scheduled for September that would decide damages against attorneys William J. Gallion, 56, Shirley A. Cunningham Jr., 52, and Melbourne Mills Jr., 76. Wehr said the trial would be rescheduled after criminal charges against the men are resolved. A trial in federal court on those counts is set to begin in October. Gallion and Cunningham own a 20 percent stake in Curlin, which won the Preakness Stakes, second leg of the Triple Crown, in May. Former clients who claim the lawyers took too much money as part of a $200 million fen-phen settlement are suing the attorneys.
Judge: Fen-Phen lawyers owe $62 million
Three attorneys accused of bilking their clients in a diet drug settlement must repay at least $62.1 million in settlement funds and interest, a judge ruled Friday. Special Judge William Wehr ordered William J. Gallion, 56, Shirley A. Cunningham Jr., 52, and Melbourne Mills Jr., 76, to repay $42 million taken from the settlement and $20.1 million in interest. Wehr said the interest was 8 percent over the six years the attorneys had the funds. The attorneys are being sued by about 400 former clients who claim the lawyers took too much money as part of a $200 million fen-phen settlement. Gallion and Cunningham own a 20 percent stake in Curlin, who won the second leg of the Triple Crown in May. A federal grand jury indicted the attorneys last month, charging them with conspiring to commit wire fraud in representing more than 400 people in a lawsuit over the diet drug.
Bond Revoked For Fen-Phen Lawyers
(AP) - Three lawyers accused of bilking their clients in a diet drug settlement were jailed Friday after a federal judge agreed to delay their trial date but revoked their bond. The attorneys, including two co-owners of Preakness winner Curlin, were remanded to custody during a hearing in U.S. District Court in Covington, according to an order filed in the court clerk's office. Judge William Bertelsman agreed to the lawyers' request to push the trial date back to January 7, 2008. It had been set for Oct. 15. Shirley Cunningham Jr. and William Gallion, who own 20 percent of Curlin, were jailed, along with another lawyer, Melbourne Mills Jr. The three were already found in a civil case to have defrauded more than 400 clients in a $200 million settlement involving the diet drug fen-phen.
Fen-phen lawyers must pay millions
LOUISVILLE - Three attorneys accused of bilking their clients in a diet drug lawsuit settlement must repay at least $62.5 million in settlement funds and interest, a judge ruled Friday. Special Judge William Wehr ordered William J. Gallion, 56, Shirley A. Cunningham Jr., 52, and Melbourne Mills Jr., 76, to repay $42 million taken from the settlement and $20.5 that they put into a corporation they set up, the Kentucky Fund for Healthy Living. Wehr said the attorneys must also pay 8 percent interest on the money for the six years they had it. The attorneys are being sued by about 400 former clients who claim the lawyers took too much of a $200 million fen-phen settlement. A federal grand jury indicted the attorneys last month, charging them with conspiring to commit wire fraud in representing more than 400 people in a lawsuit over the diet drug combination.
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