Hagens Berman

Last updated
Hagens Berman
Headquarters Seattle, Washington
No. of offices10
No. of attorneys80
Major practice areasClass-action
Key people Steve Berman, managing partner
Date founded1993
FoundersSteve Berman and Carl Hagens
Company type Limited liability partnership
Website www.hbsslaw.com

Hagens Berman is a law firm headquartered in Seattle, Washington. As of 2022, it had about 80 lawyers. [1] Hagens Berman is a plaintiff's law firm, [2] especially known for large class-action lawsuits. [3] The firm was founded in 1993 by Steve Berman and Carl Hagens in order to pursue a case against Jack in the Box that was turned down by the law firm at which they worked. A few years later the firm represented 13 out of 46 U.S. states involved in litigation against tobacco companies. Subsequently, Hagens Berman took on a number of class-action cases against large car manufacturers, oil businesses, and others. [4] Hagens Berman has been involved in municipal climate change litigation, suing oil companies on behalf of cities. The firm has been subject to an ethics investigation and sanction over its handling of thalidomide litigation involving alleged birth defects.

Contents

History

Hagens Berman was founded in 1993 by Steve Berman and Carl Hagens. [4] [5] Initially, it was started in order to take on a case against Jack in the Box related to customers getting E. coli. The law firm the founders worked at turned down the case, so the founders left and started their own firm, Hagens Berman. Two years later, they settled the case for $12 million. [3] [4]

By 2005, the firm had 35 lawyers and five locations. [6]

Tobacco

In 1996, Hagens Berman was hired by Washington state's attorney general to sue tobacco companies. At the time, lawsuits against tobacco companies for causing cancer and addiction had been largely unsuccessful. However, new evidence made public by whistleblowers showed tobacco companies intentionally targeted children in their advertising and misled the public about the effects of smoking. Hagens Berman later represented 13 states in the lawsuit out of 46 participating U.S. states. The case was settled in 1998 for a total of $206 billion. [5]

Environmental issues

Hagens Berman employed the strategy of having cities sue oil companies over damages attributed to climate change. [7] The tactic was based on the tobacco litigation of the 1990s. [8] [9] The firm represented the cities of San Francisco, Oakland, New York, and Seattle in suing five global oil companies over climate change. Hagens Berman negotiated a 23.5% contingency fee in these lawsuits.

In the 2000s, Hagens Berman represented the town of Kivalina, which was built on an island off the coast of Alaska. The town had to relocate due to rising oceans. Hagens Berman sued oil companies, alleging they intentionally misled the public regarding the effect using fossil fuels has on the environment. For example, some oil companies built their offshore oil rigs in a matter that protected them against rising water levels, while simultaneously advertising to the public that climate change science was uncertain. The judge for the case said it would be difficult for Hagens Berman to tie specific damages to a specific oil company. [5] Hagens Berman also negotiated a settlement from Exxon after the Exxon Valdez oil spill near Alaska. [10]

Automotive issues

In 2014, Hagens Berman sued General Motors for a defective ignition switch that lowered the resale value for owners. [11] That same year, the firm sued Takata and Honda for allegedly defective airbags. [12] In another case, the firm later negotiated a $1.1 billion settlement from Toyota regarding its failure to disclose a defect causing certain vehicle models to accelerate on their own. [10] The law firm was anticipated to earn $200 million in legal fees for the case, which was considered high for a settlement of that size. [10]

In 2015, Volkswagen was exposed for engineering their vehicles to trick emissions tests into thinking the vehicle had lower emissions than it did. [13] Hagens Berman was the first [14] U.S. law firm that filed a class-action lawsuit against Volkswagen for this issue. [13] The case was settled for $1.2 billion in 2017. [15] The Volkswagen case led to similar lawsuits against other car manufacturers accused of manipulating diesel emission tests. [16] [17] In 2016, Hagens Berman sued Mercedes, alleging testing showed certain vehicles would emit 10-65 times the legal limit of emissions. [16] A subsequent lawsuit in the United Kingdom accused Daimler of using devices that artificially lower emissions when they are being tested. [17] In 2017, Hagens Berman filed lawsuits against General Motors, alleging it designed the Duramax engines to trick emission tests. [18]

Thalidomide case

In 2011, Hagens Berman filed dozens of lawsuits against Grünenthal on behalf of adults who were born with birth defects allegedly caused by their mothers using the anti-nausea drug thalidomide during pregnancy, in the 1950s and 1960s. [4] [19] Berman claimed the victims only recently became aware that thalidomide caused their birth defects and the statute of limitations did not begin until they discovered the source of their injuries. The judge ruled the cases were frivolous and the statute of limitations had expired, since the side effects of thalidomide had been known for decades. [4]

The judge issued sanctions against Berman for frivolous litigation. [4] The court ordered an investigation of the firm's work on the case in 2014. The investigation found "bad faith and dishonesty" and said Berman altered documents fraudulently. [19] Several of Hagens Berman's clients sued the firm alleging it misrepresented the case's progress and prioritized protecting the firm from sanctions over the clients' claims. For example, the clients said Hagens Berman said the lawsuits against Grünenthal were a long-shot in internal documents, while advising clients it was a strong case. Additionally, the lawsuit against Hagens Berman alleged the firm told its clients GlaxoSmithKline was removed as a defendant for strategic reasons, without disclosing that GlaxoSmithKline agreed to waive sanctions against Hagens Berman in exchange for being removed from the lawsuit. [19]

Anti-trust cases

Hagens Berman sued Electronic Arts for anti-trust issues related to its exclusivity deals with major sports organizations, like the NFL, for sports-based video games using their teams and players. The case was settled in 2008 for $27 million and an agreement to discontinue such exclusivity contracts. [20] [21] The law firm sued the National Collegiate Athletic Association regarding restrictions on education-related benefits for student athletes. [22] The court awarded a total of more than $65 million in attorney fees to the law firms working for plaintiffs after the case went to the Supreme Court of the United States. The Supreme Court upheld the verdict against the defendants. [22]

Hagens Berman also filed lawsuits against the NCAA over its contract terms limiting the rights of players to transfer to other teams. [23] In 2011, Hagens Berman filed a lawsuit against all five of the largest book publishing companies, alleging they conspired to keep book prices high in an effort to respond to the price pressures Amazon was having on the market. [24]

Hagens Berman handled a 2018 case against DRAM memory manufacturers it alleged conspired to reduce the supply of DRAM to inflate prices in a 2016 agreement. [25] In 2019, Hagens Berman sued Apple Inc. on behalf of small mobile phone app developers alleging anti-trust behavior, such as contracts that prohibit developers from communicating with users of their apps. A $100 million settlement was reached, Apple agreed to change its practices, and Apple paid $30 million in Hagens Bermans' attorney fees. [26] Hagens Berman sued Amazon in 2021 alleging it made price-fixing agreements with all five of the largest publishers prohibiting them from selling the same books for a lower price to other retailers. [27]

In 2022, a pro se litigant found a problem in Berman's plan for distributing $205 million from the anti-trust lawsuit "In re: Optical Disk Drive Antitrust Litigation." [28] The pro se litigant asked the court to award him $100,000 from the class-action settlement for finding the error. Hagens Berman alleged it identified the error first and $100,000 for a few hours of work was exorbitant. [28] Berman was eventually awarded $31 million in attorney fees, 11 years after the lawsuit began. [29] The lawsuit regarded allegations that several hard drive manufacturers engaged in price-fixing agreements to inflate prices. The award of attorney fees was contentious because defendants that didn't agree to the settlement won the case at the summary judgment phase. [29]

Other cases

Hagens Berman was one of the firms representing former Enron employees in a lawsuit regarding employee pensions after the company went bankrupt. [3] [6] In 2006, Hagens Berman itself was ordered to pay $10.8 million for failing their ethical duty of loyalty when it continued lawsuits its clients wanted to settle. [3] Hagens Berman was one of several law firms that sued for antitrust issues related to the drug Glumetza. [30] The law firms collectively asked for $112.8 million in legal fees. The judge said this was exorbitant and awarded only $50 million. [30] Berman also represented users of the arthritis drug Humira in an antitrust case. [31]

Hagens Berman also led a lawsuit against Google on behalf of Free Range Content, alleging AdSense cancelled accounts just before large payments were due to users. [32] It also sued Seaworld in 2015, alleging it advertised that it cares for and protects its orcas, while actually mistreating them. [33]

During the COVID-19 pandemic, Hagens Berman sued schools it alleged were continuing to charge students full tuition rates after converting to an online-only academic program due to COVID. For example, the firm alleged the University of Oregon continued charging fees for on-campus services that were no longer available during the pandemic. [34] The law firm started similar lawsuits against Vanderbilt University, George Washington University, [35] and others. [36] It also sued Amazon under allegations that it took advantage of the pandemic to sell certain items at inflated prices. [37]

Hagens Berman sued Apple for using refurbished, rather than new, products as replacements of defective products under its AppleCare warranty. The case was settled for $95 million. [1] Hagens Berman requested the judge award $27.5 million in legal fees for the case and Apple asked that the court award less than $23.7 million. [1]

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References

  1. 1 2 3 Scarcella, Mike (February 14, 2022). "Apple fights $27.5 mln legal fee request in California class action". Reuters. Retrieved April 15, 2022.
  2. ↑ Frankel, Alison (September 22, 2015). "How U.S. lawyers were so quick off the mark to sue Volkswagen". Reuters. Retrieved April 14, 2022.
  3. 1 2 3 4 Ho, Vanessa; Lewis, Mike (March 18, 2011). "Seattle law firm told to pay $10.8 million". seattlepi.com. Retrieved April 14, 2022.
  4. 1 2 3 4 5 6 Garde, Damian (April 20, 2017). "The lawyer who took on Big Tobacco and Enron is now going after Big Pharma for 'gouging' the American consumer". Business Insider. Retrieved April 14, 2022.
  5. 1 2 3 Dembicki, Geoff (December 22, 2017). "Meet the Lawyer Trying to Make Big Oil Pay for Climate Change". VICE. Retrieved April 14, 2022.
  6. 1 2 Gregg, Deirdre (March 11, 2005). "Class-action crackdown less than as advertised". Puget Sound Business Journal. p. 6.
  7. ↑ Howe, Savannah (October 25, 2021). "As private lawyers try to muscle climate change cases into state courts, King County drops its federal case". Legal Newsline. Retrieved 30 November 2021.
  8. ↑ Harder, Amy (January 22, 2018). "The flawed climate gambit against big oil". Axios. Retrieved 30 November 2021.
  9. ↑ Flaherty, Scott (September 7, 2017). "Eying Climate Change Cases, Hagens Berman Beefs Up Environmental Group". The American Lawyer. Retrieved 30 November 2021.
  10. 1 2 3 "Big Payday for Law Firm in Toyota Deal". WSJ. December 26, 2012. Retrieved April 14, 2022.
  11. ↑ Frizell, Sam (June 18, 2014). "General Motors Is Getting Sued For $10 Billion—Yes, $10 Billion". Time. Retrieved April 14, 2022.
  12. ↑ Hirsch, Jerry (October 31, 2014). "Takata, Honda face class-action lawsuit over faulty air bags". Los Angeles Times. Retrieved April 14, 2022.
  13. 1 2 "NY Man Sues Volkswagen Over Emissions Scandal: 'Every Reason That I Bought the Car Was Based on a Lie'". ABC News. September 22, 2015. Retrieved April 14, 2022.
  14. ↑ Frankel, Alison (September 22, 2015). "How U.S. lawyers were so quick off the mark to sue Volkswagen". Reuters. Retrieved May 29, 2022.
  15. ↑ Shepardson, David (October 25, 2016). "U.S. judge approves $14.7 billion deal in VW diesel scandal". Reuters. Retrieved May 29, 2022.
  16. 1 2 "Mercedes owner files US suit over diesel emissions". the Guardian. February 19, 2016. Retrieved April 14, 2022.
  17. 1 2 Jolly, Jasper (March 24, 2021). "UK Mercedes-Benz car owners seek damages over alleged emissions cheating". the Guardian. Retrieved April 15, 2022.
  18. ↑ DeBord, Matthew (June 2, 2017). "GM is facing a lawsuit alleging emissions cheating - but the automaker checked out all of its diesel vehicles after VW's crisis". Business Insider. Retrieved April 16, 2022.
  19. 1 2 3 Frankel, Alison (November 29, 2021). "Thalidomide morass deepens for Hagens Berman as more clients sue firm". Reuters. Retrieved April 16, 2022.
  20. ↑ Gilmore, Dave (July 23, 2012). "EA could pay out $27 million to 'Madden' and 'NCAA' gamers in class-action lawsuit". Baltimore Sun. Retrieved April 14, 2022.
  21. ↑ "Class-Action Suit Says EA Gouged on Madden Prices". Wired. April 6, 2011. Retrieved April 14, 2022.
  22. 1 2 Scarcella, Mike (August 5, 2021). "Plaintiffs' lawyers in NCAA case pick up $3.5 mln more in fees". Reuters. Retrieved April 16, 2022.
  23. ↑ "Ex-Northwestern player sheds light on transfer rule by suing NCAA, school". USA TODAY. November 15, 2016. Retrieved April 14, 2022.
  24. ↑ "Apple, Publishers Conspired Against $9.99 Amazon E-books: Lawsuit". Wired. August 10, 2011. Retrieved April 16, 2022.
  25. ↑ Lilly, Paul (April 30, 2018). "Lawsuit alleges Samsung, Micron, and Hynix colluded to drive up DRAM prices". pcgamer. Retrieved April 16, 2022.
  26. ↑ Scarcella, Mike (August 27, 2021). "Class lawyers in App Store deal will seek up to $30 mln in fees". Reuters. Retrieved April 15, 2022.
  27. ↑ Long, Katherine (March 25, 2021). "Amazon faces new lawsuit alleging it fixed book prices". The Seattle Times. Retrieved April 15, 2022.
  28. 1 2 Scarcella, Mike (March 29, 2022). "Hagens Berman decries critic's bid for $100k in disk-drive antitrust case". Reuters. Retrieved April 15, 2022.
  29. 1 2 Thomas, David (July 2, 2021). "Hagens Berman gets $31 mln fee award in disk drive antitrust fight". Reuters. Retrieved April 15, 2022.
  30. 1 2 Scarcella, Mike (February 4, 2022). "U.S. judge guts fee request in Glumetza pay-for-delay case, awards $50 mln". Reuters. Retrieved April 15, 2022.
  31. ↑ Pierson, Brendan (February 25, 2021). "7th Circuit urged to revive 'patent minefield' suit over AbbVie's Humira". U.S. Retrieved April 15, 2022.
  32. ↑ Rosenblatt, Seth (May 20, 2014). "New lawsuit accuses Google of AdSense fraud". CNET. Retrieved April 14, 2022.
  33. ↑ "Lawsuit filed against SeaWorld over mistreatment of captive orcas". cbs8.com. August 22, 2015. Retrieved April 14, 2022.
  34. ↑ "College students ask court for refunds over online learning in Oregon". Associated Press. March 23, 2021. Retrieved April 15, 2022.
  35. ↑ Dickler, Jessica (May 6, 2020). "Demand for refunds intensifies among college students". CNBC. Retrieved April 16, 2022.
  36. ↑ Dickler, Jessica (September 18, 2020). "College students argue distance learning should cost less as some schools are charging more". CNBC. Retrieved April 16, 2022.
  37. ↑ Slisco, Aila (July 2, 2021). "Amazon faces lawsuit alleging price gouging during pandemic". Newsweek. Retrieved April 16, 2022.
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