Hagens Berman Referred to DOJ for Alleged Misconduct in Product Liability Cases

In the complex world of product liability law, where corporations are held accountable for injuries caused by their products, a recent development has sent shockwaves through the legal community. The prominent plaintiffs’ law firm Hagens Berman Sobol Shapiro LLP, along with its managing partner Steve Berman and former partner Tyler Weaver, has been referred to the U.S. Department of Justice (DOJ) for potential criminal investigation. This referral stems from allegations of misconduct in handling long-running thalidomide lawsuits, raising serious questions about ethical practices and the pursuit of justice in product liability cases.

The Genesis of the Referral

The Hagens Berman referral to the DOJ originated from a federal judge’s deep concerns regarding the firm’s conduct in thalidomide lawsuits. These cases, initiated in 2011, involved claims that the drug thalidomide caused severe birth defects when taken by pregnant women decades ago. While the cases aimed to secure justice for victims, new findings have led to scrutiny of the firm’s practices, with the judge describing the firm’s conduct as “shocking” and said it “approached the criminal”.

U.S. District Judge Paul Diamond issued the referral after reviewing a special master’s report. Beyond that, the judge observed that many complaints lacked adequate factual support. He further noted that several claims appeared to have been filed with little investigation. Consequently, the court expanded its scrutiny, especially as many cases were dismissed on statute-of-limitations grounds.

Special Master’s Findings

To evaluate the legitimacy of the thalidomide claims, Judge Diamond appointed attorney William Hangley as a special master in 2015. Hangley’s multi-year examination of the firm’s evidence, expert reports, and client screening methods culminated in a detailed report issued in October 2023. The report identified several troubling issues, including allegations that Hagens Berman:

Failed to properly vet clients’ medical histories.
Filed claims without sufficient factual support.
Interfered with the discovery process.
Attempted to withdraw when sanctions appeared likely.
Allowed a former partner to alter a draft expert report.

These findings raise concerns about the thoroughness and integrity of the firm’s representation of its clients. While Hangley recommended sanctions, he stopped short of suggesting a criminal referral, a step Judge Diamond ultimately deemed necessary.

Hagens Berman’s Response

Hagens Berman has strongly refuted the allegations, with outside counsel describing the referral as “confusing and unsupported” and arguing that it misinterprets the litigation record. The firm maintains that it had reasonable grounds to bring the thalidomide claims and insists that it had no intent to mislead the court. They emphasize that losing a case does not equate to misconduct and that they acted in good faith on behalf of clients who believed the drug caused harm.

Managing Partner Steve Berman has stated that while there may have been alternative ways to handle the situation, the firm always acted with integrity. “We have explained to the court how we properly disclosed what we could and followed all ethical rules,” Berman said, reaffirming confidence in the firm’s actions and ethical judgment.

Implications for Product Liability Law

The Hagens Berman referral has significant implications for the field of product liability law. It underscores the importance of ethical conduct and due diligence in representing clients who have been injured by defective products. The case also highlights the potential consequences of pursuing claims without adequate factual support or engaging in misconduct during litigation.

Product liability cases are complex and challenging, requiring experienced attorneys, thorough investigation, and expert testimony to prove that a product defect caused injury or loss. The Hagens Berman case serves as a reminder that even well-known firms must adhere to the highest ethical standards and legal principles.

Product Liability: Holding Manufacturers Accountable

Product liability law is designed to protect consumers from harm caused by defective products. When a product is manufactured, consumers have the right to assume that the product should be safe and fit for normal and ordinary use. Unfortunately, major corporations sometimes prioritize profits over consumer safety, leading to injuries and fatalities.

Product liability claims typically fall into three categories:

Manufacturing Defects: These occur when errors in the manufacturing process result in a product differing from its intended design, making it dangerous.
Design Defects: These defects arise when the design of a product is inherently unsafe, even if manufactured correctly.
Marketing Defects (Failure to Warn): This involves inadequate instructions or warnings about a product’s proper use or potential risks.

To succeed in a product liability case, it must be demonstrated that the manufacturer was negligent or strictly liable for manufacturing, distributing, or selling an unreasonably dangerous product. Evidence must also show that the defect caused the injury or loss and resulted in damages.

The Role of Product Liability Lawyers

Product liability lawyers play a crucial role in helping injured consumers seek justice and compensation. They investigate the circumstances surrounding the injury, gather evidence, consult with experts, and build a strong case against the responsible parties. They also navigate the complex legal landscape, ensuring that their clients’ rights are protected.

Experienced product liability lawyers understand the nuances of these cases and can effectively advocate for their clients’ interests. They work to recover compensation for medical expenses, lost income, pain and suffering, and other damages.

Recent Hagens Berman Class Action Lawsuits

Hagens Berman is involved in a number of class action lawsuits.

Hagens Berman filed a class-action lawsuit against Big Oil companies on behalf of those who purchased homeowners insurance.
Hagens Berman represents homebuyers in a class-action lawsuit against Zillow alleging it leveraged its market dominance to illegally increase purchase price.
Hagens Berman has filed a class action against Costco accusing the retailer of knowingly selling Kirkland Signature tequila that contains “significant presence of non-agave sugars.”
Hagens Berman has filed a nationwide class-action lawsuit against racetrack owners who also own or co-own computer-assisted wagering (CAW) horse betting and wagering platforms.

Moving Forward

The Hagens Berman referral to the DOJ is a significant development that could have far-reaching consequences for the firm and the legal profession. As the investigation unfolds, it is essential to remember the importance of ethical conduct, due diligence, and a commitment to justice in product liability cases. Consumers who have been injured by defective products deserve to have their claims thoroughly investigated and vigorously pursued, but only within the bounds of the law and ethical principles.

If you or a loved one has been injured by a defective product, it is crucial to seek legal advice from an experienced product liability attorney. They can help you understand your rights and options and guide you through the legal process.