Kentucky lawyers in fen-phen case deny responsibility for excessive fees

By William Murphy

Published on April 18, 2006

In a 2001 class action suit on behalf of 431 people who allegedly suffered heart damage as a result of taking fen-phen, the Lexington lawyers sued American Home Products and received a $200 million settlement. Of the $200 million, the clients received $74 million. In total, lawyers, consultants, and the nonprofit Fund for Healthy Living set up by the lawyers received $106 million. Gallion, Cunningham, and Mills became paid board members of the fund.

The three lawyers are appealing a March 8, 2006, decision by Special Judge William Wehr that they breached their fiduciary duty in receiving compensation for services that exceeded the limits stipulated in contracts--set at between 30 and 33 percent of the total settlement. The lawyers received close to 49 percent. Lawyers for the Kentucky Fund for Healthy Living have joined in appealing Wehr's March decision.

On April 12 Wehr denied a request by the lawyers to set aside his March ruling. He will hear arguments from Angela Ford, the plaintiffs' new attorney, regarding how much compensation Gallion, Cunningham, and Mills owe their former clients. Ford has requested that an independent entity be assigned to manage the money in the Kentucky Fund for Healthy Living.

Comment on this article →