• Here’s what happened: More details have emerged in the recent indictment of a Houston plaintiffs’ attorney who allegedly pocketed millions over the last decade by inflating medical expenses, misleading injured clients and filing fraudulent tax returns. 
  • The indictment alleges the law firm’s employees helped keep track of the amounts and were promised half of the misappropriated funds. 
• Once is a mistake, twice is a pattern: The prolific advertising personal injury trial lawyer–known for representing commercial vehicle cases–has faced previous legal issues, including allegations of using tow truck drivers to solicit clients. 
• In their own words: “At times, Moore intentionally failed to disclose and pass along the cost savings from the reduced medical bills to his clients and thereby skimmed for himself a portion of the settlement funds that belonged to his clients.”
• Bills, bills, bills: Medical billing is a major cost driver in personal injury litigation.
  • Plaintiff’s attorneys send their clients to specific medical providers, who have agreed to treat the clients without billing them immediately. 
  • The doctors are essentially working on a contingency fee, with the understanding that the medical bills will be paid out of whatever settlement or judgment the lawsuit ultimately yields. 
  • These chiropractors and doctors over-diagnose, over-prescribe and over-treat (sometimes even recommending unnecessary surgeries) to jack up the total cost of the medical bills that they’ll get compensated for when the litigation is resolved.
  • In addition to inflating the cost of economic damages (things like medical bills, that make the plaintiff whole), juries tend to think plaintiffs with higher medical bills also deserve more in non-economic damages (like pain and suffering). 
• TLR Thoughts: Inflating medical bills is one tactic unscrupulous plaintiff’s attorneys use to boost litigation for profits… often at their clients’ expense. This case provides an unsettling look at the inner workings of this personal injury lawsuit mill.

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