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Buffett's PacifiCorp suspected of collusion by wildfire victims' law firms
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Buffett's PacifiCorp suspected of collusion by wildfire victims' law firms
Jul 19, 2024 9:38 AM

July 19 (Reuters) - The law firms leading class-action

litigation against PacifiCorp ( PPWLM ) over the 2020 Labor Day weekend

wildfires in Oregon want to examine whether the utility owned by

Warren Buffett's Berkshire Hathaway ( BRK/A ) is colluding with

other law firms to reach lowball settlements with fire victims.

In a court filing, Edelson PC, Keller Rohrbach and Stoll

Berne said they were blindsided when PacifiCorp ( PPWLM ) and three law

firms not involved in the class action jointly announced a

$178-million settlement on June 3 with 403 victims of the

Beachie Creek and Echo Mountain Complex fires.

The class-action firms said payouts per victim were barely

two-thirds of the payouts in an earlier $299-million settlement

obtained by other law firms for victims of the Archie Creek

fire, and included almost nothing for pain and mental suffering.

They said the June 3 settlement came just one week after

mediation to resolve the class action broke down, as the three

other law firms began cold-calling and mailbox-stuffing to

encourage fire victims to hire them and settle.

"(The three firms) appear to be working hand-in-hand with

PacifiCorp ( PPWLM ) to enrich themselves, benefit PacifiCorp ( PPWLM ), and harm

fire survivors" by settling claims at a "PacifiCorp ( PPWLM )-approved,

bargain-basement price point," the class-action firms said.

PacifiCorp ( PPWLM ) had no immediate comment on Friday. The three

firms, Warren Allen, Spreter Petiprin and the Swigart Law Group,

did not immediately respond to requests for comment.

The dispute threatens to complicate Portland-based

PacifiCorp's ( PPWLM ) efforts to settle Oregon and northern California

wildfire claims, after being blamed for failing to shut off

power lines during a windstorm.

PacifiCorp ( PPWLM ) has paid more than $1 billion to settle over

1,600 claims, but faces billions of dollars of additional

claims, including a $30-billion lawsuit.

Last month, the three firms in the $178-million settlement

asked the Portland-based judge overseeing the class action to

clarify when they can solicit fire victims.

The class-action firms now want the judge's permission to

review communications between the three firms, PacifiCorp ( PPWLM ) and

class members for possible collusion, and let victims who

settled with PacifiCorp ( PPWLM ) back out if collusion is found.

PacifiCorp ( PPWLM ) is a unit of Berkshire Hathaway Energy, which is

92% owned by Berkshire Hathaway ( BRK/A ), the conglomerate that Buffett

has run since 1965.

Greg Abel, Buffett's expected successor as chief executive,

said at Berkshire's annual meeting on May 4 that PacifiCorp ( PPWLM ) will

continue challenging "unfounded" wildfire litigation.

The case is James et al v. PacifiCorp ( PPWLM ) et al, Oregon Circuit

Court, Multnomah County, No. 20CV33885.

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