The proposed $45 million settlement by Eckert Seamans Cherin & Mellott for investors defrauded by cash advance company Par Funding is facing potential jeopardy. This development follows an unexpected twist from the recent U.S. Supreme Court decision that nullified the expansive bankruptcy settlement of opioid manufacturer Purdue Pharma.
In the landmark decision in Harrington v. Purdue Pharmaceuticals, the Supreme Court ruled against legal protections extended to the Sackler family, who controlled Purdue. This ruling raises questions about the settlement negotiated by the Pittsburgh-founded Am Law 200 firm Eckert Seamans, which resolved issues related to its former partner John Pauciulo’s dealings with Par Funding. This settlement proposed using millions from the firm’s malpractice insurance to secure an order preventing further litigation, attorneys explained at a July 12 status conference and through court filings.
“The Supreme Court in Harrington made it clear that federal courts can no longer ‘look the other way’ and issue such free passes to mass tortfeasors such as Eckert who refuse to place their assets on the settlement negotiation table,” argued attorney George Bochetto.
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