He was also studying the history of mass tort litigation and found it surprising the number of times that a defendant corporation’s stock rose impressively when it settled and got rid of a bunch of lawsuits. There was normally a dip in the stock price with the first wave of bad news and hysterics from the plaintiffs’ bar, but as battle lines were formed and the numbers became firm, Wall Street seemed to prefer a good settlement. What Wall Street hated was “squishy liability,” the kind that was often seen when a big case was handed over to a jury and the results were unpredictable. In the past ten years, virtually all of the major mass tort cases involving pharmaceuticals had been settled, and for billions.
On one hand, David was finding comfort in the research. But on the other, it had turned up little in the way of credible proof that Krayoxx did all the terrible things it was accused of doing.
——
After a thorough and fair debate, Judge Seawright had heard enough. He thanked the lawyers for their preparation and promised a ruling within ten days. The extra time was not needed — he could have ruled immediately from the bench. There was little doubt he would keep the cases in Chicago, and he seemed to favor the idea of a “show trial.”
The plaintiffs’ lawyers retired to the Chicago Chop House, where Mr. Alisandros had reserved the back room for a private lunch. Including Wally and David, there were seven lawyers and two paralegals (all men), and they all took their places around an oblong table. Jerry had preordered wine, and it was poured as soon as they sat down. Wally and David declined.
“A toast,” Jerry announced as he tapped his wineglass. Silence. “I propose a toast to the Right Honorable Harry Seawright and his famous Rocket Docket. The trap has been laid, and the fools at Rogan Rothberg think we’re blind. They want a trial. Old Harry wants one too, so by God let’s give ’em a trial.”
Everyone took a sip, and within seconds the conversation spiraled down to an analysis of the legs and backside of Nadine Karros. Wally, who had the right-hand seat to the throne of Mr. Alisandros, offered comments that were deemed hilarious. Over salads, the chatter quite naturally made its way to their second favorite subject — settlement. David, who was saying as little as possible, was coaxed into telling the story of his encounter with Taylor Barkley just before the hearing. His narrative was received with great interest — too much, in his opinion.
It was Jerry’s stage, and he did most of the talking. In equal parts, he was enthusiastic about a big trial with a big verdict, but he was also supremely confident Varrick would buckle and put billions on the table.
Hours later, David was still confused, but he was also comforted by the presence of Jerry Alisandros. The man had fought the wars, inside the courtroom and out, and he almost never lost. According to Lawyers Weekly , the thirty-five partners at Zell & Potter split $1.3 billion in net profits the previous year. Net, after new jets, a firm golf course, and every other lavish expense allowed by the IRS. According to Florida Business magazine, Jerry’s net worth was somewhere around $350 million.
Not a bad way to practice law.
David had not shown these numbers to Wally.
For almost thirty years, Kirk Maxwell represented Idaho in the U.S. Senate. He was generally well regarded as a steady hand who shunned publicity and preferred to work off camera to get things done. He was quiet, unassuming, and one of the more popular members of Congress. However, his sudden death was nothing short of spectacular.
Maxwell had the Senate floor, microphone in hand, arguing fiercely with a colleague from the other side of the aisle, when he suddenly clutched his chest, dropped his mike, opened his mouth in horror, and crashed forward into the back of the desk in front of his. He died instantly of cardiac arrest, and it was all captured on the official Senate camera, released without proper authorization, and seen by the world on YouTube before his wife could get to the hospital.
Two days after his funeral, his wayward son mentioned to a reporter that the senator had been taking Krayoxx and the family was considering a lawsuit against Varrick Labs. By the time this was digested through the 24/7 news cycle, there was little doubt that the drug had killed the senator. Maxwell was only sixty-two, in fine health, but with a family history of high cholesterol.
An angry colleague announced a subcommittee hearing into the hazards of Krayoxx. The Food and Drug Administration was besieged with demands that the drug be pulled. Varrick Labs, hunkered down in the hills outside of Montville, offered no comment. It was another dark day for the company, but Reuben Massey had seen worse.
Such a lawsuit would be ironic for two reasons. First, in his thirty years in Washington, Senator Maxwell had taken millions from Big Pharma and, as far as the industry was concerned, had a perfect voting record. Second, the senator was an ardent tort reformer who had voted for years to place severe restrictions on the filing of lawsuits. But in the aftermath of a tragedy, irony is often lost on those left behind. His widow hired a noted plaintiffs’ lawyer in Boise, but for “consultation only.”
With Krayoxx on the front page, Judge Seawright decided a trial might be interesting after all. He ruled against the plaintiffs on all issues. The lawsuit Wally had filed and then amended would be broken up into separate pieces, with the case of the late Percy Klopeck being the first to get slotted into the fury of Local Rule 83:19, the Rocket Docket.
Wally was panic-stricken when he received notice of the ruling, but he began to settle down during a long and soothing conversation with Jerry Alisandros. Jerry explained that the death of Senator Maxwell was a gift from heaven — in more ways than one because a rabid tort reformer had been silenced — and would only increase the pressure on Varrick to begin settlement talks. And besides, as Jerry kept saying, he would welcome the chance to be on center stage versus the lovely Ms. Karros in a packed Chicago courtroom. “The last place they want to see me is in a courtroom,” Jerry said again and again. His “Klopeck trial unit” was hard at work at that very moment. His firm had dealt with many egocentric federal judges with their own special versions of their own little Rocket Dockets.
“Seawright didn’t create the Rocket Docket?” Wally asked, innocently.
“Heavens, no, Wally. I heard that term thirty years ago in upstate New York.” Jerry went on to encourage Wally to continue combing the streets for more Krayoxx cases. “I’m about to make you rich, Wally,” he said again and again.
——
Two weeks after Senator Maxwell’s death, the FDA caved and ordered Krayoxx off the market. The mass tort bar was orgasmic, and lawyers in a dozen cities issued statements to the press, most of the same variety: Varrick will have to answer for its gross negligence. A federal investigation should be launched. The FDA should never have approved the drug. Varrick knew it had problems but had rushed the drug to market, where, in six years, it had grossed over $30 billion for the company. Who knows what’s really buried in the Varrick research.
Oscar was conflicted by the news. On one hand, he, obviously, wanted the drug to generate as much bad press as possible to force the company to come to the table. But on the other hand, he was secretly, fervently hoping the drug would take care of his wife. Pulling it would ratchet up the pressure on Varrick, but it would also remove the drug from her medicine cabinet. Actually, Oscar’s perfect outcome would be breaking news of a pending settlement at about the same time his wife croaked on the drug. He could keep all the money, avoid a messy divorce, then file suit on behalf of his dear departed wife and nail Varrick yet again.
Читать дальше