Stan Chesley drops bomb on fen phen lawyers
During questioning by the government in the trial of William Gallion and Shirley Cunningham, Class action expert Stan Chesley was shown a breakdown of expenses taken from one of the fen phen claimants settlement. Chesley was paid some $20 million in fees after he was hired by the original attorneys to negotiate a $200 million dollar settlement.
Chesley said that it was inappropriate for his fees to have been charged as expenses. Chesley said his money should have came from the other lawyers’ cut, not Ferguson Sr.’s.
“Those are clearly fees,” Chesley said.
Chesley said he did not have any contact with the clients. The disbursement of settlements was left to Gallion, Cunningham and Mills, he said.
Chesley repeated his testimony from the first trial that some of the settlement money had to be set aside for future claimants, which is one of Gallion’s and Cunningham’s primary defenses.
But Chesley said the money should have been placed in an interest-bearing account. When no claimants stepped forward after a year, the money should have been paid with interest to the clients.
“The money belonged to the claimants,” he said.