Berkshire Hathaway’s PacifiCorp Accused of Collusion

The law firms of Edelson PC, Keller Rohrbach and Stoll Berne were negotiating a class-action settlement against Berkshire Hathaway’s PacifiCorp. They were seeking compensation for 403 victims of two Labor Day weekend fires in Oregon in 2020.

The three law firms say they were taken by surprise when the victims agreed to a $178 million settlement on June 3rd. The decision was reached a week after negotiations broke down.

Upon learning of the breakdown in talks, the lawyers say PacifiCorp and three law firms not attached to the class action suit took to stuffing mailboxes and cold-calling victims urging them to settle.

On June 3rd PacifiCorp and three law firms announced the settlement.

Edelson, Rohrback and Berne said the victims will get maybe two-thirds of what those who settled a $299 million settlement earlier this year. And that’s before pain and suffering.

“(The three firms) appear to be working hand-in-hand with PacifiCorp to enrich themselves, benefit PacifiCorp, and harm fire survivors” by settling claims at a “PacifiCorp-approved, bargain-basement price point,” Edelson, Rohrback and Berne said.

They want the judge to give them permission to review communications between the class action members and PacifiCorp and the three law firms and to look for evidence of collusion.

If such evidence is found, they want the judge to allow the victims where were “fooled” to be able to withdraw from the settlement.

Source link: Insurance Journal — https://bit.ly/4bW5lAc