The WSJ law blog reports that the board of governors of the Kentucky Bar Association voted to disbar noted plaintiffs’ attorney Stanley Chesley for alleged misconduct in a case that produced a $200 million settlement against a diet pill manufacturer. Chesley allegedly convinced a judge to approve awarding the attorneys 49 percent of the settlement and then pocketed $4 million more than his share. chesley and the othe attorneys in the case are also alleged to have lied to their clients about the size of the settlement. Kentucky.com has more here. The Bar’s recommendation now goes to the Kentucky Supreme Court.
As BLT reports, if Chesley is disbarred in Kentucky it could affect ongoing litigation, such as the state AGs suit against Fannie Mae for securities fraud. Ohio is the lead state plaintiff, and it retained Chesley as outside council. Should Chesley be disbarred in Kentucky, it would trigger disbarment hearings in Ohio (the two states have reciprocity) and jeopardize his pro hac vice admission in federal court in D.C. for the Fannie Mae case.