July 24, 1998: Five Kentuckians file suit in Boone Circuit Court against American Home Products Corp. (now Wyeth), alleging they suffered heart damage from fen-phen, a diet-drug combination ordered off the market the year before.
May 16, 2001: Boone Circuit Judge Joseph Bamberger approves settlement for 440 plaintiffs in an amount later revealed to total $200million.
July 31, 2002: Bamberger orders that remaining funds, more than $20million, be placed in trust and given away “for charitable and philanthropic purposes.” He appoints three plaintiffs lawyers — Shirley Cunningham Jr., William Gallion and Melbourne Mills Jr., and their trial consultant, Mark Modlin — as the fund's paid directors.
June 25, 2004: Bamberger, retired to senior status, is elected as a director of the fen-phen fund, and eventually paid $50,350, which he returns after the payments are publicly disclosed.
Nov. 16, 2004: Lexington lawyer Angela Ford files lawsuit on behalf of 36 former plaintiffs who say they were never told the size of the settlement or the amount of money passed into the fund. The suit names as defendants Cunningham, Gallion, Mills and Cincinnati lawyer Stan Chesley, who the other lawyers hired to negotiate a settlement.
Feb. 27, 2006: Bamberger resigns rather than face possible removal by the Judicial Conduct Commission, which publicly reprimands him for approving excessive fees to the plaintiffs' lawyers, failing to disqualify himself in light of his friendship with Modlin, and accepting paid appointment as a director of the fund.
March 8, 2006: Special Judge William Wehr rules that Cunningham, Gallion and Mills breached their duty to their clients when they paid themselves and others more than half of the $200million settlement and put an additional $20million into the fund. The ruling means they could be ordered to surrender some or all of their fees. The lawyers announce they will appeal.
Aug. 24, 2006: Kentucky Supreme Court temporarily suspends licenses of three lawyers, citing a 6-0 ruling; finds probable cause that the lawyers misappropriated funds held for others.
February 2007: Gallion and Cunningham sell 80 percent of their interest in the race horse Curlin (pic), which they had purchased for $3.5million. Horse goes on to become two-time horse of the year.
June 14, 2007: Cunningham, Gallion and Mills indicted by federal grand jury on a charge of conspiracy to commit wire fraud.
July 1, 2008: Mills is acquitted and released from jail.
July 3, 2008: After 52 hours of deliberation over eight days, mistrial declared when jury announces it is deadlocked on charges against Gallion and Cunningham.
Oct. 23, 2008: Gallion and Cunningham are permanently disbarred.
April 2, 2009: In retrial, Gallion and Cunningham are convicted of eight counts of fraud and one count of conspiracy to commit fraud for taking $94.6million from their clients in the diet drug case.
Aug. 17, 2009: Cunningham is sentenced to 20 years in prison and Gallion to 25 by U.S. District Judge Danny C. Reeves, who orders them to pay more than $127million in restitution and to forfeit another $30million to the government.
Great job by The Courier-Journal
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