Class Action Lawsuits Now Target Law Schools
Legal Marketing
A threatened wave of class actions against American law schools became a reality last week after plaintiffs' lawyers sued a dozen more schools over their allegedly misleading use of salary and employment data. But this trend in "consumer protection" is potentially damaging, not only to U.S. law schools, but to higher education in general, said two attorneys for the national law firm LeClairRyan.
"If the goal of these suits is securing transparency on jobs data, then the plaintiffs and their counsel are going about this in entirely the wrong way," said veteran class action defense attorney Michael Haratz, a Newark-based partner in LeClairRyan's Business Litigation team. "While there is nothing wrong with working toward clear, consistent and coherent reporting standards, such matters are best addressed via the regulatory process—not by bending higher education to fit a consumerist paradigm more appropriate to a purchaser of traditional consumer goods."
The trend shows every sign of expanding to other institutions across the country, added Haratz. "According to a prominent legal journalist, for example, one of the plaintiffs' lawyers—someone who previously declared 2012 'the year of law school litigation'—hopes to sue up to 25 new schools every few months," he said.
The new complaints come in the wake of highly publicized class actions filed last year against Thomas M. Cooley Law School, New York Law School and Thomas Jefferson School of Law. The latest schools to be targeted reportedly are: Albany Law School, Brooklyn Law School, Hofstra Law School, Widener Law, Florida Coastal School of Law, Chicago-Kent College of Law, DePaul University College of Law, John Marshall Law School, California Western School of Law, Southwestern Law School, University of San Francisco School of Law, and Golden Gate University School of Law.
The complaints allege that U.S. law schools artificially boost enrollments by exaggerating or misrepresenting graduates' employment and salary statistics. "The problem with such litigation is that it runs contrary to the purpose and spirit underlying the class-action lawsuit as a vehicle for consumer redress," said Robert B. Smith a Boston-based LeClair Ryan partner and leader of the firm's Education Industry team. "Why? Because the consumerist paradigm does not fit higher education. Just as law degrees should not come with guarantees of 'gainful employment or your money back,' law students should not regard themselves as consumers entitled to same. After all, they are individuals with varying degrees of talent, motivation, discipline and intelligence. Their futures are their own responsibilities."
About LeClairRyan
As a trusted advisor, LeClairRyan provides business counsel and client representation in corporate law and litigation. In this role, the firm applies its knowledge, insight and skill to help clients achieve their business objectives while managing and minimizing their legal risks, difficulties and expenses. With offices in California, Connecticut, Massachusetts, Michigan, New Jersey, New York, Pennsylvania, Virginia and Washington, D.C., the firm has approximately 350 attorneys representing a wide variety of clients throughout the nation. For more information about LeClairRyan, visit www.leclairryan.com.
Related listings
-
New York Securities Litigation Law Firm - Herskovits PLLC
Legal Marketing 01/23/2012New York Securities Litigation Law Firm We are trusted advisors for litigation and regulatory enforcement matters. When disputes arise – in the enforcement, customer and employment context – we are skilled negotiators, using every available resource ...
-
Robbins Geller Rudman & Dowd LLP Files Class Action
Legal Marketing 01/16/2012Robbins Geller Rudman & Dowd LLP today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of California on behalf of purchasers of Netflix, Inc. co...
-
Izard Nobel LLP Announces Class Action Lawsuit
Legal Marketing 11/16/2011The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Distri...
Workers’ Compensation Subrogation of Administrative Fees and Costs
When a worker covered by workers’ compensation makes a claim against a third party, the workers’ compensation insurance retains the right to subrogate against any recovery from that third party for all benefits paid to or on behalf of a claimant injured at work. When subrogating for more than basic medical and indemnity benefits, the Texas workers’ compensation subrogation statute provides that “the net amount recovered by a claimant in a third‑party action shall be used to reimburse the carrier for benefits, including medical benefits that have been paid for the compensable injury.” TX Labor Code § 417.002.
In fact, all 50 states provide for similar subrogation. However, none of them precisely outlines which payments or costs paid by a compensation carrier constitute “compensation” and can be recovered. The result is industry-wide confusion and an ongoing debate and argument with claimants’ attorneys over what can and can’t be included in a carrier’s lien for recovery purposes.
In addition to medical expenses, death benefits, funeral costs and/or indemnity benefits for lost wages and loss of earning capacity resulting from a compensable injury, workers’ compensation insurance carriers also expend considerable dollars for case management costs, medical bill audit fees, rehabilitation benefits, nurse case worker fees, and other similar fees. They also incur other expenses in conjunction with the handling and adjusting of workers’ compensation claims. Workers’ compensation carriers typically assert, of course, that, they are entitled to reimbursement for such expenditures when it recovers its workers’ compensation lien. Injured workers and their attorneys disagree.