Gori firm accused of fraud, racketeering, ‘bounties’ in asbestos litigation

Spread the love

A Los Angeles-based maker of plastic pipes has sued the Gori Law Firm, accusing the most prolific filer of asbestos litigation of a long-running scheme of lawsuit fraud and racketeering.

On Jan. 28, J-M Manufacturing filed suit in federal court in the Southern District of Illinois against the Edwardsville-based Gori firm.

The company asserts its claims are based on information supplied by a “whistleblower” attorney who formerly worked at the Gori firm, who allegedly laid bare a long-running scheme to create a system of “bounties,” deception and other tactics to back up the filing of hundreds of “baseless claims” to ultimately secure billions of dollars in fees from settlements allegedly based on fraud.

“This lawsuit seeks accountability for what we allege was an industrial-scale fraud operation: manufactured claims, coached testimony, and the deliberate exploitation of the legal system for profit,” said J-M General Counsel Frank Fletcher in a statement announcing the lawsuit.

“J-M Manufacturing was forced to spend millions defending lawsuits brought on behalf of plaintiffs who never worked with its products—including individuals whose work histories ended before the company even existed.”

The lawsuit against Gori comes as an expansion of J-M’s legal fight to expose what it calls a pattern of fraud and racketeering in what has become the decades-old asbestos litigation industry.

Since 2024, J-M has pressed fraud and racketeering claims against the Alton-based firm of Simmons Hanly Conroy.

Simmons Hanley Conroy is the second most prolific filer of asbestos-related lawsuits in the U.S., trailing only the Gori firm.

According to industry tracking data published by national technology and management consulting company KCIC, in 2024, the Gori firm filed 788 lawsuits in Madison and St. Clair County courts.

Simmons Hanly Conroy came in second with 393 lawsuits filed, KCIC reported.

KCIC has not yet published 2025 filings data.

J-M, however, has asserted that many of those cases have been based on fraud.

J-M specifically has accused the Simmons firm of falsifying or suppressing evidence in asbestos cases and coaching witnesses to allegedly lie under oath about exposure to asbestos from cement pipes J-M produced.

After a Chicago federal judge tossed the initial claims, J-M filed an amended complaint, asserting it could back its new claims with “whistleblower” testimony and evidence.

On Jan. 23, the Simmons firm and other defendants filed another motion to dismiss, asserting J-M’s new claims should suffer the same quick end as their previous complaint, because they assert J-M did not cure the alleged shortcomings from its initial lawsuit.

A judge has not yet ruled on that new motion and the case remains pending.

Meanwhile, however, J-M has now engaged the Gori firm in court, as well.

According to court documents, J-M has been targeted more than 6,000 times in asbestos-related lawsuits, with most of the lawsuits filed in Madison and St. Clair counties, America’s top two destinations for such lawsuits.

However, J-M asserts it was identified as a defendant in those cases solely to drive up the number of defendants to improve the chances of securing settlements from companies that are either unwitting, confused or otherwise unwilling to fight the claims.

They note accusations of fraudulent behavior are nothing new in asbestos litigation, as evidenced by other cases in which plaintiffs’ firms have been caught double-dipping – using litigation delay tactics to improperly collect from both asbestos lawsuits and later claims filed against bankrupt companies – or filing fraudulent claims altogether. These included famous cases that generated headlines in asbestos litigation involving CSX and Garlock Sealing Techs.

In the new complaint, J-M claims a lawyer who formerly worked at the Gori firm has provided evidence that Gori allegedly engaged in similar patterns of fraud, but allegedly took the alleged scheme to new levels.

In the new complaint, J-M accuses the Gori firm of establishing a so-called “bounty” system under which it incentivized the lawyers it used to conduct depositions of clients – so-called “depo attorneys” – to coax and coach clients into agreeing to level false asbestos exposure claims against J-M and other companies, even when the client had never been exposed to products made by those companies.

According to the complaint, the Gori firm had used that bounty system since at least 2018.

Under the alleged system, attorneys “who successfully coached their clients to provide deposition testimony that they were exposed to products belonging to (J-M and certain other companies)” could secure “up to 2% of total settlement proceeds.”

This could allegedly allow an attorney earning as little as $65,000 a year the chance to bring in “up to $800,000 or $900,000” more in earnings per year, the complaint alleges.

According to the complaint, the alleged “bounty list” included J-M and at least 19 other companies, allegedly including 3M, Caterpillar and Honeywell, among others.

According to the complaint, companies allegedly landed on Gori’s “bounty list” because they were seen as “easy targets who were willing to pay substantial settlements” or were companies that had “‘pissed off’ Gori attorneys” in prior proceedings.

According to the complaint, this alleged strategy of tacking on dozens of potential additional defendants – allegedly whether or not they were based on factual claims – allowed Gori to maximize its returns using a so-called “batch settlement” scheme.

“The Gori Firm deliberately filed and used a large volume of … cases it knew were objectively baseless … as ‘bargaining chips’ for batch settlements,” J-M wrote in its complaint. “By bundling these sham cases with cases containing coached testimony, the Gori Firm extracted inflated settlement values while concealing that many of the dismissed cases were filed solely to create negotiating leverage rather than to pursue legitimate claims.”

According to the complaint, the Gori firm has named J-M as a defendant in its asbestos lawsuits at least 400 times.

However, the complaint notes that about 96% of those cases were ultimately dismissed.

In its release, J-M said those dismissals were “an outcome (that) reflects not weak litigation strategy, but a deliberate business model designed to force settlement of objectively frivolous cases.”

In the complaint, J-M asserts it is not the only alleged victim of the alleged Gori scheme. They assert such allegedly fraudulent claims have driven more than 100 companies into bankruptcy and cost the U.S. economy hundreds of billions of dollars.

J-M said it is seeking to highlight the alleged abusive practices to draw “a distinction between legitimate accountability for asbestos exposure and what it alleges is systemic abuse of the litigation process.”

In response to the lawsuit, the Gori firm issued a statement, saying: “We are outraged by these ridiculous claims from an asbestos company. These scare tactics will not stop us from fighting for justice for our clients who are hurt by manufacturers like J-M Manufacturing Company.”

Leave a Comment





Latest News Stories

Casey Council Meeting Graphic.2

Casey Moves Forward with Utility Rate Study as Resident Questions City Processes

The City of Casey took the next step toward addressing its utility rate issues during Monday's council meeting, while a resident raised concerns about city transparency and bidding processes. Utility...
City Council Meeting Briefs.Purple

CITY MEETING BRIEFS

Utility Rate Study Advances: Water and sewer rate study information is ready for submission to the Illinois Rural Water Association for professional review, moving the city closer to addressing identified...
Casey Westfield School Board.1

Casey-Westfield Schools Earn Perfect Financial Rating, Approve Major Purchases

The Casey-Westfield School District received the highest possible financial profile rating and a clean audit for fiscal year 2024, while also approving significant equipment purchases and personnel changes during Monday's...
Casey Westfield School Board.2

Casey-Westfield Schools Focus on Student Activities and Community Engagement

Casey-Westfield schools are emphasizing hands-on learning and community connections through diverse programs spanning elementary through high school levels, according to administrator reports presented during Monday's board meeting. Elementary students at...
Casey Westfield School Board.3

SCHOOL BOARD MEETING BRIEFS

Waiver Renewal Approved: The board authorized renewal of the full-day School Improvement waiver, allowing continued use of four full professional development days instead of six half-days, based on staff and...
Casey Council Meeting Graphic.2

Casey Council Considers Utility Rate Increases After Audit Reveals Losses

The Casey City Council is moving toward potential utility rate increases after a recent audit revealed the city is losing money on its water and sewer operations, officials announced during...
City Council Meeting Briefs.Blue

CITY MEETING BRIEFS

Executive Session Held: The city council met in closed session for 23 minutes to discuss litigation matters, following proper legal procedures for confidential discussions. No action was announced following the...
Casey Council Meeting Graphic.2

Police Report Pharmacy Break-In Resolution

Casey Police Chief Adam Henderson announced that federal authorities have resolved the investigation into a break-in at the local Pharmacie Shoppe that occurred several months ago. Henderson reported during the...
Casey Council Meeting Graphic.1

Casey Council Approves Property Transfer, Reshuffles Committees

The Casey City Council approved the transfer of two downtown properties and reorganized council committees during their January 8 meeting, while Mayor Mike Nichols outlined an ambitious list of projects...
City Council Meeting Briefs.Purple

CITY MEETING BRIEFS

Christmas in the Park Success: The annual Christmas in the Park event attracted approximately 1,800 vehicles and raised around $6,600 in donations, according to organizer Shane Todd. Todd thanked the...
Candy-Canes-on-Main-Lighted-Parade

Candy Canes on Main Lighted Parade

SAVE THE DATE!! Dec. 6 @6:30 The Candy Canes on Main 2024 Event kicks off with an amazing lighted parade in downtown Casey, Illinois. Want to participate...reserve your spot @...
Gingerbread-House-Contest

Gigerbread House Decorating Competition 2024

Get the creative juices flowing by entering our Gingerbread House Decorating Competition! Register online through our website. We’re also partnering with Wildflour Bakery & Candy Co. They will be offering a Gingerbread...
Freedom-Festival

Casey Freedom Festival

Join us for a fun filled day of activities in Downtown Casey followed by fireworks in Fairview Park at dusk! Full schedule of events will be posted soon.
Popcorn-Festival

KZ5K Fun Run/Walk

Three full days of family fun, food, and entertainment.... an extremely enjoyable street festival over the Labor Day weekend. Join us Aug. 30-Sept. 2, 2024, at Fairview Park as we...
Popcorn-Festival-1

Casey Popcorn Festival Car Show

Free POPCORN all weekend! Three full days of family fun, food, and entertainment.... an extremely enjoyable street festival over the Labor Day weekend. Join us Aug. 30-Sept. 2, 2024, at...