On Friday, November 17, 2023, Reuters reported the Louisiana State Police had opened a criminal investigation into a Texas law firm over its handling of hurricane damage claims. According to records obtained by the Louisiana State Police, the investigation is focused on McClenny Moseley Associates, formerly known as MMA.

The probe was launched following a complaint from the Louisiana Department of Insurance. The department found that the firm filed over 20 lawsuits on behalf of clients who say they never retained MMA as their legal representatives. Many of these clients also reportedly did not receive payouts from settled claims.

Last year, MMA filed hundreds of property damage suits against insurers on behalf of Louisiana residents affected by Hurricanes Laura, Delta, and Ida. Since then, the law firm has faced accusations of improperly soliciting clients through marketing companies. It has also been accused of using the wrong insurance providers and duplicating lawsuits.

As a result of these allegations, both state and federal courts in Louisiana have taken disciplinary actions against MMA attorneys. A US federal judge barred the firm from collecting fees for around 200 cases. Separately, former clients have initiated malpractice suits against MMA, claiming its errors caused them to miss compensation opportunities.

Earlier in 2022, the Louisiana Department of Insurance imposed $2 million in fines on MMA, finding evidence of fraud and unfair practices involving approximately 850 clients. The department then referred the matter to the Louisiana State Police in October for a criminal investigation based on the scale of the issues. The police investigation is ongoing as authorities work to determine if criminal charges are warranted.

 

Source: Reuters