The prominent plaintiffs’ firm Hagens Berman Sobol Shapiro is fighting sanctions in two separate federal court cases after judges criticized its handling of client claims, according to Reuters. The Seattle-based firm, known for leading high-profile consumer class actions, is attempting to overturn a recent dismissal in its lawsuit against Apple and Amazon while also seeking to disqualify a judge overseeing potential sanctions in a long-running thalidomide litigation in Philadelphia.
Apple and Amazon litigation in Seattle
In the Seattle case, U.S. District Judge Kymberly Evanson dismissed a proposed class action accusing Apple and Amazon of conspiring to inflate iPhone and iPad prices. The judge ruled last month that Hagens Berman misled the court by failing to promptly disclose that its sole named plaintiff wanted to withdraw from the lawsuit.
Evanson previously sanctioned the firm with over $223,000 in legal fees to be paid to Apple and Amazon and may consider further penalties. In a filing this week, Hagens Berman argued that its actions were guided by client confidentiality under Washington’s professional conduct rules. Managing partner Steve Berman said in an email to Reuters that the firm “properly disclosed what we could and followed all ethical rules,” adding that independent experts have supported their position.
Apple and Amazon, which have denied the underlying claims, did not respond to requests for comment. The case alleged that both companies colluded to limit third-party iPhone and iPad sales on Amazon’s platform, reducing competition and keeping prices high.
Renewed sanctions threat in thalidomide litigation
In a separate matter in Philadelphia, the firm is seeking to remove U.S. District Judge Paul Diamond from overseeing potential sanctions tied to a case involving the drug thalidomide. Hagens Berman has represented dozens of plaintiffs who alleged that pharmaceutical companies hid the drug’s risks, leading to severe birth defects when it was prescribed to pregnant women decades ago.
The litigation has been marred by accusations of misconduct. Judge Diamond previously sanctioned the firm in 2015 for pursuing claims he deemed baseless. A 2023 report from a court-appointed special master alleged that a lawyer at the firm altered an expert’s report to pressure a client to drop her claim. The special master also said Steve Berman “swore to the veracity of things he did not know and that were demonstrably false.”
Hagens Berman has dismissed the report as “baseless” and claimed it exceeded the special master’s authority. The firm now argues that Diamond’s communications with the special master created an “appearance of bias.” Judge Diamond has not yet ruled on additional sanctions.
Broader legal tensions
The firm’s troubles come as several major cases involving corporate misconduct are drawing attention to the relationship between law firms and regulators. In a related update, JPMorgan Chase has asked a Delaware judge to end its obligation to fund defense costs for Charlie Javice, the entrepreneur sentenced to more than seven years in prison for defrauding the bank over its acquisition of her startup Frank. JPMorgan says it has already advanced about $115 million in legal fees.
Separately, Google agreed to pay up to $190 million in legal fees to private law firms assisting Texas in a $1.375 billion consumer privacy settlement, one of the largest state-level privacy deals to date.