Subject: [NEXTEL-1] Nextel's Racial Discrimination Lawsuit Back In The Spot Light- Some Things You Can't Sweep Under The Rug.

From: [email-masked]
Date: Tue, 04 Nov 2003 18:05:16 -0500

Nextel's Racial Discrimination
Lawsuit Back In The Spot
Light- Some Things You Can't
Sweep Under The Rug.

Discrimination Plaintiffs say Law
Firm Sold Them Out; Made Deals
With Companies

By Sarah Wallace

(New York-WABC, November 3, 2003) — In
stunning accusations involving one of New York's
premier law firms, clients who filed discrimination
claims against major companies are now charging
they were sold out by their own lawyers through
secret deals.

The Investigators' Sarah Wallace first
broke this story last November. She
joins us now with more on the widening
investigation.

How's this sound: a law firm signs up
scores of workers to file discrimination
claims against their employers, and then
goes to the company and says, "If you
want to avoid a lot of negative publicity,
give us money, and we'll help secretly
settle the claims. And no one will know
about it."

Well, that's exactly the type of tactic
how a New York law firm is accused of
using against several companies.

And now three groups of people who've never met are joining forces,
pioneers in a legal battle that could rock corporate America.

This is a story about hard-working people who believe they have
been betrayed not once, but twice. First by their employers, and then
by the law firm that was supposed to fight for them in discrimination
claims. That law firm, Leeds, Morelli, and Brown, head quartered on
Long Island.

Yasmina King, Former Client: "It's hard to actually sit and talk about
it and not cry, because I feel like a fool."

Its web site touts the firm as a nationwide advocate for employee civil
rights. their newsletter boasts about their success, "hitting
corporations
in their pocketbooks." But now a growing number of lawsuits charge
the firm with lining its own pockets, making secret financial
agreements with companies it was threatening to sue.

Lisa Taylor, Ethics Attorney: "How could they be negotiating a side
deal for themselves at the same time as they were supposedly
representing their clients zealously?"

Lisa Taylor, the former chair of the New Jersey District Ethics
Committee, viewed two of the secret agreements we obtained.

Lisa Taylor: "I hoped it was a joke ... a case study of what not to do."

Artie Talbot, Former Client: "How can the people you're suing be
paying your attorney? That can't be right, I mean I'm not an attorney,
but I'm also not an idiot."

Our investigation began last year with some former Prudential agents
and managers, who claim they've been punished by Prudential for
selling auto insurance policies to minorities in urban areas.

A total of 359 employees had signed on with Leeds, Morelli, and
Brown to resolve various discrimination claims in an out-of-court
secret dispute resolution process.

Sarah Wallace: "It was that secret?"
Tom O'Donnell, Former Client: "Very secret, it was like CIA stuff."

The greatest secret they say, was the one kept from them, a
confidential agreement we obtained where Prudential agreed to pay
Leeds, Morelli, and Brown $5 million in advance attorneys fees to
settle all the claims.

Shubert Jacques, Former Client: "Nobody knew about the money,
whatsoever."

A lawyer for the clients:

Steve Smoot, Clients' Lawyer: "When I hear that they can go to
Fortune 500 companies and get those companies to pay them millions
of dollars in fees up front to get their clients to commit their clients
to
the secret settlement process, even I'm astounded by that."

We uncovered documents showing the law firm negotiated more than
$12.5 million for itself from three companies, before any settlements
for its clients. After our story about the Prudential agents aired last
November, we heard from several former Nextel employees who had
worked in the New Jersey office, and signed on with Leeds, Morelli,
and Brown.

Tony Samuel, Former Client: "I was shocked, and that's why I had to
get in contact with you."

These clients say the pressure to settle their claims against Nextel was

intense.

Michael Johnson, Former Client: "Take it or you may not get
anything."

They say they never knew abut a secret agreement with Nextel, which
included a $5.5 million up front fee for the attorneys, and a $2 million

consulting deal with Nextel to start after all the clients claims were
settled.

What did the 587 clients nationwide get? Settlements that were often
less than $10,000 each, a fraction of what many say they were told
their claims were worth.

Michael Johnson: "I actually got a letter from them stating that my
case was worth between $250,000 - $300,000."
Sarah Wallace: "And, in the end?"
Michael Johnson: "Whoa, $8,000."

Nextel claims the voluntary dispute resolution process was fair and
thorough, that clients had the ability to review the agreement and
could consult an outside lawyer, furthermore, that the agreement had
been reviewed and approved by a nationally known ethics expert.

In many ways, this is a David vs. Goliath battle, with a small New
Jersey law firm taking on Leeds, Morelli, and Brown.

Ken Thyne, Client's Lawyer: "I think it's illegal, I think it's bribery,

frankly."

Leeds, Morelli, and Brown declined an on-camera interview, but
claimed in a statement:

"The firm has been the victim of a meritless attack by an
infinitesimally small, yet vocal group of their former
clients instigated by the malicious acts of third-party
professionals."

But these women who worked for Penguin and Putnam Publishing in
East Rutherford, New Jersey, say the only thing that prompted them
to come forward was, that Prudential story we aired. Yes, they too,
were Leeds, Morelli, and Brown clients.

Sarah Wallace: "When you saw the Prudential story, what was your
reaction?"
Jeri Ficklin, Former Client: "We felt like we were being put through
the same tactics, and being used, basically."

A Lawsuit by the former clients alleges they were also pressured to
take low-ball settlements so Leeds, Morelli, and Brown could collect
a lucrative consulting fee from Penguin and Putnam. Clients say they
only learned about that deal when they were presented with final
settlement papers with a strict confidentiality clause.

Jeri Ficklin: "It's basically to shut your mouth. It's once you're out
of
there you don't say anything, so nobody knows what this company
has really done. So they can continue to do it for the next 20 years."

The law firm claims:

"Leeds, Morelli, and Brown has never accepted a fee
from an adverse party without disclosure and consent."

But anything more, they say, is confidential. In fact in the Prudential
case, both the company and the law firm have so far successfully
fought to keep the court record completely sealed.

Sarah Wallace: "What does that say?"
Lisa Taylor: "There's a lot to hide."

Both Penguin and Putnam, and Prudential deny all of the allegations in
the lawsuit. Leeds, Morelli, and Brown claims that in the Prudential
case, the New York State Grievance Committee determined they did
nothing wrong. The committee would not confirm that.

Tomorrow at 6:00, even more startling charges. We'll hear from
self-described recruiters who say Leeds, Morelli, and Brown used
them to round up clients as a potential threat against companies.

http://www.detnews.com/2003/macomb/0311/04/b05-315989.htm

Video:
http://abclocal.go.com/wabc/news/investigators/wabc_investigators_110303lawfirm.html#

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Buy Ink Cartridges or Refill Kits for your HP, Epson, Canon or Lexmark
Printer at MyInks.com. Free s/h on orders $50 or more to the US & Canada.
http://www.c1tracking.com/l.asp?cid=5511
http://us.click.yahoo.com/mOAaAA/3exGAA/qnsNAA/61FxlB/TM
---------------------------------------------------------------------~->

Your use of Yahoo! Groups is subject to http://docs.yahoo.com/info/terms/

---

From: "marcel_rf1" <[email-masked]>
Date: Wed, 05 Nov 2003 13:52:35 -0000

Correction on URL- 
http://abclocal.go.com/wabc/news/investigators/wabc_investigators_1103
03lawfirm.html 

> them to round up clients as a potential threat against companies.
http://abclocal.go.com/wabc/news/investigators/wabc_investigators_1103
03lawfirm.html 
> Video:
http://abclocal.go.com/wabc/news/investigators/wabc_investigators_1103
03lawfirm.html#

------------------------ Yahoo! Groups Sponsor ---------------------~-->
Rent DVDs Online - Over 14,500 titles.
No Late Fees & Free Shipping.
Try Netflix for FREE!
http://us.click.yahoo.com/xlw.sC/XP.FAA/3jkFAA/61FxlB/TM
---------------------------------------------------------------------~->