Legal News for Tues 7/30 - $79m Attorneys Fee Overturned, Big Law Ethical Dilemma in BK, ex-NRA L...

This Day in Legal History: Medicare Bill Signed
On July 30, 1965, President Lyndon B. Johnson signed the Medicare bill into law, marking a significant milestone in American healthcare. This landmark legislation, part of Johnson's Great Society programs, aimed to address the healthcare needs of the nation's elderly population. With the stroke of his pen, Johnson established Medicare, a federal program providing comprehensive health insurance to Americans aged 65 and older. The bill was signed at the Truman Library in Independence, Missouri, with former President Harry S. Truman by Johnson's side, recognizing Truman's early efforts to promote national health insurance.
Medicare went into effect the following year, in 1966, offering hospital and medical insurance to millions of senior citizens. This historic act transformed the landscape of healthcare in the United States, ensuring that older Americans would no longer face financial ruin due to medical expenses. Medicare's introduction also set the stage for future expansions, including the addition of prescription drug coverage and the establishment of Medicare Advantage plans. Over the decades, Medicare has become a cornerstone of the U.S. healthcare system, providing vital health services to millions of Americans and significantly reducing poverty among the elderly. The signing of the Medicare bill remains a pivotal moment in the pursuit of healthcare equity in the United States.
A federal appeals court overturned a $79 million attorneys’ fee award in T-Mobile US Inc.’s $350 million settlement of a data breach lawsuit. The US Court of Appeals for the Eighth Circuit ruled that the lower court abused its discretion by approving an excessive fee award in a case that settled quickly and without extensive legal proceedings. The court reversed the fee award, reinstated the objection of class member Cassie Hampe, and remanded the case for further proceedings. 
The litigation stemmed from a 2021 data breach affecting 76.6 million people, with settlement approval sought in July 2022. Judge Brian C. Wimes initially approved the fee award in June 2023, dismissing objections from Hampe and Connie Pentz as abusive. However, the appeals court found no evidence of bad faith or extortion by Hampe and criticized the lower court for not adjusting the fee award based on the hours worked by class counsel. The court noted that class counsel’s fee request amounted to an hourly rate of $7,000 to $9,500, deemed unreasonable. The case was sent back for further consideration, with the involvement of multiple law firms representing the parties.
T-Mobile Deal’s $79 Million Attorneys’ Fee Award Gets Overturned (https://news.bloomberglaw.com/litigation/objector-gets-79-million-fee-award-thrown-out-in-t-mobile-deal)
Big Law firms are reevaluating their strategies following a ruling in the Eastern District of Virginia that barred Vinson & Elkins from representing wood-pellet maker Enviva Inc. in its bankruptcy due to a conflict of interest with private equity firm Riverstone Investment Group LLC. This decision has raised concerns about potential conflicts when firms represent both private equity sponsors and their distressed portfolio companies in Chapter 11 proceedings. The ruling could force law firms to choose between lucrative private equity deals and bankruptcy cases, potentially reshaping their business models.
The court rejected Vinson & Elkins' proposal to separate their work for Riverstone and Enviva, citing ethical concerns. This outcome could lead to more aggressive challenges by the US Trustee and might require law firms to adopt stricter conflict management practices. Although some view the decision as specific to the case's facts, it signals a need for firms to better navigate ethical responsibilities.
The ruling has already influenced how law firms approach bankruptcy cases involving private equity-backed companies, with future decisions possibly reaching higher courts for further clarification. Despite this, experts like Nancy Rapoport and Bruce A. Markell believe that Big Law firms will adapt and continue to thrive by finding compliant ways to manage conflicts of interest.
Big Law Confronts Tail Risk Threat to Private Equity Bankruptcy (https://news.bloomberglaw.com/business-and-practice/big-law-confronts-tail-risk-threat-to-private-equity-bankruptcy)
A New York state judge has ruled against appointing an outside monitor for the National Rifle Association (NRA) but banned former CEO Wayne LaPierre from serving as an officer or director for ten years. The decision by Justice Joel Cohen of the Manhattan Supreme Court comes from a four-year-old civil case initiated by state Attorney General Letitia James. Although a mixed outcome, the ruling followed a trial stage where jurors found LaPierre and others guilty of financial mismanagement, including funding LaPierre's lavish lifestyle. LaPierre was ordered to repay $4.35 million to the NRA, and former f...

Видео Legal News for Tues 7/30 - $79m Attorneys Fee Overturned, Big Law Ethical Dilemma in BK, ex-NRA L... канала Andrew Leahey