Case Studies

Stream/Ignite Racketeering Litigation

On June 30, 2009, Scott Clearman, The Clearman Law Firm, PLLC, on behalf of his clients, filed a detailed class action complaint against retail energy provider Stream, Stream’s marketing arm, Ignite, and their officers and top salespersons, alleging that they operated a pyramid scheme in violation of the federal Racketeer Influenced and Corrupt Organizations Act (“Ignite Action”). After over nine years, the case has settled.

Representing Businesses in Rate Case Class Action

Scott served as lead counsel in three class actions representing large businesses alleging worker's compensation insurance overcharges. The aggregate recovery for the classes was in excess of $277 million. Net of attorneys fees and expenses of $77.98 million, the class members received more than $195 million.

Representing Families of Employees Insured under Corporate Owned Life Insurance (also known as "COLI," "BOLI," or, unfortunately, 'dead peasant' insurance)

Scott has obtained settlements of over $19.4 million for the families of deceased Wal-Mart and Fina employees after the companies bought and made themselves the beneficiaries of life insurance policies on the lives of their employees. Net of attorneys' fees and expenses of $6.44 million, the classes received $12.86 million.

Representing Dentists against Dental Support Organizations

As national counsel, Scott successfully defended a public orthodontic practice management company against a group of 65 orthodontists in 35 lawsuits in federal and state courts throughout the country.

Having gained the highest level of expertise in corporate management of dental practices, Scott currently litigates on behalf of dental professionals against Dental Support Organizations (DSOs). DSOs seem to offer an attractive arrangement on the surface, which may reveal itself to be an inescapable web of contracts which sidelines the dentists' control over their practice. Once ensnared, the dentist is pressured to meet untenable production targets in order earn their previously routine salary, over and above the DSO's exorbitant "management fees."

Representing an Individual Denied Life Insurance Benefits

Scott represented a wife denied death benefits under a life insurance policy insuring her husband. The total recovery was $1.45 million, more than the face value of the policy. Net of attorneys" fees and expenses of $512,000, the client received $983,000.