Law firm accused of 856 insurer misrepresentations is suspended from practice in federal district court.
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Houston-based law firm McClenny, Moseley & Associates has been suspended from practice in a Louisiana federal court because of a judge’s concerns about its purported representation of clients with claims related to Hurricanes Laura, Delta and Ida.
In a March 4 order, U.S. District Judge James D. Cain Jr. of the Western District of Louisiana suspended McClenny, Moseley & Associates for 90 days. Law360 has the story. Cain cited evidence that the firm, known as MMA, had filed “numerous suits” against insurers that never issued policies to the plaintiffs and had filed lawsuits for plaintiffs who had already settled their insurance claims. He also cited an alleged instance in which MMA improperly signed a settlement check.
The Louisiana Department of Insurance had also targeted MMA with a cease-and-desist letter Feb. 17. The letter said MMA misrepresented that it had been retained by hurricane victims to several insurance companies in connection with MMA’s contractual arrangement with Apex Roofing and Restoration. The letter cited evidence from hearings by Cain and a different district judge in the Eastern District of Louisiana.
According to the cease-and-desist letter, MMA had “admitted to 856 misrepresentations to Louisiana insurers that MMA was retained by the insureds/homeowners, when in fact MMA did not represent those insureds/homeowners relative to claims for payments and benefits under those insurance policies.” The firm also admitting settling nine cases in which it did not represent the plaintiffs.
James J. Donelon, the Louisiana commissioner of insurance, announced the cease-desist-order in a Feb. 17 news release.
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Law firm accused of 856 insurer misrepresentations is suspended from practice in federal district court (abajournal.com)
Posted on: March 8, 2023 - In
the latest sanction against the McClenny Moseley & Associates firm, the Louisiana Supreme court has indefinitely suspended the law license of William Huye, the attorney who manages their New Orleans office. This, of course, is following in the wake of fraud accusations against the firm for their questionable tactics in signing and handling of Hurricane Laura and Ida claims.
https://www.morrisbart.com/mma-la-attorney-suspended/