Dec 5 (Reuters) - A Mississippi lawyer and former
federal judge has sued national plaintiffs law firm Hagens
Berman Sobol Shapiro, claiming it failed to pay him his share of
attorney fees from a lawsuit against drugmaker Wyeth.
Walter Nixon Jr, who served on the Southern District of
Mississippi federal trial court from 1968 until his removal for
alleged misconduct two decades later, filed the lawsuit last
week in federal court in Gulfport.
Nixon alleged that Hagens Berman and another firm hired him
in 2010 to help them pursue a lawsuit accusing Wyeth of fixing
prices for its antidepressant Effexor XR. Nixon was then a
director and shareholder at Biloxi-based drug reseller
Professional Drug, which became the named plaintiff in the Wyeth
case, court records show.
Wyeth, now a Pfizer subsidiary, denied the price-fixing
claims but agreed to settle the case for $39 million in April.
Nixon in his lawsuit said Seattle-based Hagens Berman never
paid him his agreed-upon share of a $13 million legal fee award
stemming from the settlement.
Nixon did not immediately respond to requests for comment.
His attorney had no immediate comment.
Thomas Sobol, one of the lead Hagens Berman lawyers in the
Wyeth case, told Reuters that he was "entirely unaware of a
dispute regarding fees" and had not received a demand from
Nixon. He said Thursday that he contacted Nixon's lawyer after
learning of the lawsuit "to address the issue promptly" but had
not heard back.
Professional Drug, founded in 1958, bought drugs from
manufacturers and resold them at wholesale prices.
Nixon, a 1951 graduate of Tulane Law School, spent years
working as a lawyer in Biloxi, including as an attorney for
Professional Drug, court records show. He was appointed as judge
in 1968, but was convicted in 1986 on charges that he lied to a
grand jury. He was impeached over his conduct and removed from
the federal bench three years later.
Nixon denied making any false statements. His law license
was reinstated in 1993 by the Mississippi Supreme Court.
Sobol and Mississippi lawyer Don Barrett met with Nixon in
2010 to discuss Professional Drug serving as a plaintiff in the
Wyeth case, Nixon's lawsuit said.
Nixon also agreed to jointly share responsibility with
Hagens Berman and Barrett's firm for representing Professional
Drug in the Wyeth case, court records show. In return, the law
firms each agreed that Nixon would receive 15% of their legal
fee awards stemming from the case, according to Nixon's lawsuit.
Barrett, who worked with Sobol on the case, did not
immediately respond to a request for comment. Nixon said he was
already paid his share of Barrett's award.
Nixon's role included gathering documents and data, but the
agreement barred him from advising Professional Drug on issues
related to settling the case or the legal team's attorney fees,
according to a letter from Hagens Berman included in the
lawsuit.
Professional Drug voluntarily dismissed its claims against
Wyeth in 2020 without providing a reason.
Hagens Berman never paid Nixon his share of its fees after
Wyeth settled, the lawsuit said. Nixon said he was seeking at
least $1 million in damages for Hagens Berman's alleged
"intentional breach of its obligations."
-- In other legal fee news, attorneys who persuaded a Delaware
judge to void Tesla founder Elon Musk's $56 billion pay
package are poised to walk away from the case with a hefty
payday - just not the one they wanted.
The plaintiff's lawyers at Bernstein Litowitz Berger &
Grossmann, Andrews & Springer, and Friedman Oster & Tejtel are
entitled to $345 million in fees for their work on the case,
Chancellor Kathaleen McCormick ruled Monday.
McCormick, who previously called Musk's pay package
excessive in a January ruling that rescinded it, said Tesla's
board could not hit "reset" to restore it through a shareholder
vote.
The plaintiff's attorneys had initially requested a fee
award of more than 29 million Tesla shares for their work, which
would have amounted to a multi-billion dollar windfall based on
the company's share price.
Tesla's share price has surged since Nov. 5, when Republican
candidate Donald Trump, supported by Musk, won the U.S.
presidential election. As of Monday's market closing, the fee
request would have been worth more than $10 billion.
"In a case about excessive compensation, that was a bold
ask," McCormick wrote in her 103-page ruling. The $345 million
award is still the largest ever in Delaware.
Tesla said it would appeal McCormick's decision to the
Delaware Supreme Court.
(Legal Fee Tracker is a weekly feature exploring attorney
compensation awards and disputes in class actions, bankruptcies
and other matters. Please send tips or suggestions to
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