I was recently contacted by LexisNexis® Mealey's Litigation Report: Lead regarding my work on the Sherwin-Williams (SHW) litigation. The following is what appeared: The full report can be purchased here
Massachusetts Investor: Shareholder Lawsuit Needed Against Plaintiff Attorneys BOSTON - Shareholders who own stock in the companies being sued under public nuisance law for producing lead paint and pigment should sue the plaintiff attorneys pursuing such litigation, a Massachusetts investor told Mealey Publications on March 29.
Todd Sullivan, a self-described value investor, said he is exploring the possibility of suing the plaintiff attorneys Motley Rice and the Rhode Island Attorney General's Office in connection with the case brought on behalf of the State of Rhode Island (State of Rhode Island v. LIA, No. 99-5226, R.I. Super., Providence Co.).
Litigation 'Wrong'
Sullivan said that the litigation against Sherwin-Williams and others is "wrong" and that the former makers of paint and pigment should be paid restitution for their defense costs.
The money being spent on litigation should be spent on growing the companies, Sullivan said.
Sullivan said that based on conversations with attorneys, he is confident that the Rhode Island lawsuit will move to the federal level as defense counsel file a case on constitutional grounds.
Shareholder Action
Once in federal court, Sullivan said, he is "sure it will be overturned."
Should that happen, Sullivan said he would file a case on behalf of shareholders, alleging that the plaintiff attorneys' actions devalued the defendants' stock and that the companies should be compensated.
Furthermore, Sullivan said the combination of federal action and a shareholder lawsuit will have a chilling effect on other jurisdictions, such as Ohio.
Otherwise, Sullivan said, "we are looking at the next wave of corporate bankruptcies."
