AGs Sue Firms Over Fake Lawsuits
Attorneys general from Connecticut and Florida are suing five law firms in Federal Court on claims that the lawyers took millions of dollars in fees for “mass-joinder” lawsuits that they did little or nothing to advance, according to published accounts including The Courthouse News legal website, which explains that … “attorneys general say in the 39-page lawsuit that the U.S. foreclosure crisis led to a drastic rise in predatory practices by firms like the defendants, who ‘made money by charging distressed homeowners upfront fees on the promise that they could obtain mortgage modifications for these homeowners, often providing little or no actual assistance.'”
How the AGs say it worked: Homeowners are led to believe that they will be represented by real law firms and that joining a mass-joinder lawsuit will help them avoid foreclosure, reduce their interest rates and loan balances, and entitle them to monetary compensation.
Read details at TCN here: Courthouse News Service