Louisiana
Law firm accused of fraud in Louisiana hurricane suits files for bankruptcy in Texas
A Texas law firm accused in a scheme to file thousands of lawsuits against insurers after major hurricanes in Louisiana has filed for bankruptcy protection.
MMA Law Firm, formerly known as McClenny Moseley & Associates, filed for Chapter 11 protection in the Southern District of Texas last week.
The firm, which was fined a record $2 million by the Louisiana Department of Insurance for unfair trade practices, reported between $10 million and $50 million in liabilities in bankruptcy filings. The Insurance Department is listed as a creditor that is owed $500,000 in fines. A host of attorneys, adjusters and other companies and government agencies are also listed as creditors.
MMA filed thousands of lawsuits on behalf of homeowners across Louisiana who suffered hurricane damage in 2020 and 2021, when hurricanes Laura, Delta and Ida caused billions of dollars in damage. The firm’s lawyers have since faced a slew of allegations that they forged signatures and mishandled client funds, among other things.
The firm is accused of claiming to represent policyholders when it was actually retained by a roofing company, then sending demand letters to the policyholders’ insurers and negotiating settlements without authorization from the policyholder.
Former Insurance Commissioner Jim Donelon called the company’s actions “one of the most egregious cases that has ever come through this department.”
The company went to court in August to try to convince a judge to lift their suspension. At the hearing, one of the firm’s founding partners, Zach Moseley, said the law firm had raised a total of $40 million in private investment, at least some of which came from the Equal Access to Justice hedge fund, which is based in West Palm Beach, Florida, and managed by B.E. Blank & Co. The investors later unsuccessfully tried to recoup their investments in disciplinary proceedings.
While Moseley did not specify how exactly the money was used, court documents showed that the firm paid internet marketing company Velawcity $13.9 million to find clients, at $3,000 to $3,500 for each “prescreened client lead.” The law firm then filed thousands of lawsuits, in at least some cases, without the plaintiffs expressed permission or knowledge, raising red flags with federal judges in Lake Charles and New Orleans.
Over the span of a year, federal courts across the state issued a series of sanctions against the firm, eventually banning its attorneys from practice in those courts and advising plaintiffs interested in pursuing their cases to seek new representation, leaving MMA unable to collect attorney’s fees on many of the cases it filed.
A lawyer representing the firm didn’t immediately respond to an email about the bankruptcy Monday.
The company has defended its practices in the past, saying it was deploying technology to help an unprecedented number of homeowners get a fair shot at recovering the funds needed to repair their homes.
Staff writer Alena Maschke contributed to this report.
Louisiana ranks among the top 10 most affordable states to retire, according to a new study from Retirement Living, a national journal of retirement research.
Researchers analyzed each state’s housing costs, living expenses and tax friendliness to compile the ranking. Louisiana, they say, is the eighth most affordable state for retirees.
In Louisiana, the median monthly rent for a one-bedroom apartment is $932, the median home sale price is $255,000, monthly grocery spend per capita is $272, the average price per gallon of regular gas is $4, the average Medicare Advantage monthly premium is $13.35 and the average effective property tax rate is 0.55%.
West Virginia is the most affordable state to retire, followed by Mississippi, Alabama, Oklahoma, Arkansas, Kentucky, Missouri, Louisiana, Indiana and Kansas. Researchers describe the South as “the sweet spot for an affordable retirement.”
The most expensive state to retire, meanwhile, is California, followed by Hawaii, Washington, Oregon, Colorado, New Jersey, Massachusetts, Utah, New York and Minnesota.
Read Retirement Living’s full report here.
BATON ROUGE, La. (WAFB) – With hurricane season approaching, the Louisiana Coastal Protection and Restoration Authority is bringing the community together to prepare before a storm forms.
“We can’t stop disasters from happening. We can’t stop hurricanes from happening. But what we can do is equip our communities with the resources that they need to prepare for these storms ahead of time,” said Jayda Morris, CPRA outreach manager.
The agency hosted an event featuring interactive storm simulations and a full model of the Mississippi River.
“If you do it now, like on a sunny day like today, you’re ready to go for the rest of the season,” Jay Grymes said.
El Niño may reduce storms, but Louisiana still at risk
State Climatologist Jay Grymes said an El Niño pattern may reduce the number of storms in the Atlantic but warned against a false sense of security.
“In those 25 years, Louisiana, some part of the state has been impacted by 29 storms. That’s one a year, regardless of El Niño. So that should tell you something,” Grymes said.
He said the bigger concern is storms that can form in the Gulf with little warning.
“If we’re going to get a storm, it very possibly could be one that bubbles up in the Gulf and doesn’t give us five or seven days to track it coming our way. It gives us 40 hours to get ready for a landfall. So it’s imperative that you go ahead and do it now,” Grymes said.
Preparation goes beyond stocking water
Preparing now includes walking through yards, checking trees, and knowing whether everyone in the family can survive two weeks without power.
PhD students with the LSU College of the Coast and Environment gave the community a virtual reality experience that puts users inside a storm.
“If they wear the goggles or play with the Apple Vision Pro, they can understand how high will the flood be, and they can know how dangerous is the hurricane scenario,” said Yixuan Wang.
The VR simulation uses real historical data to show users what compound flooding looks like in New Orleans and surrounding areas. The goal is to make the science real for people who can’t picture what a flood map means.
“It’s just to let you understand the environment. We will add the audios, the different sound of the wind and the storm. And you can see how tense of the rainfall around you,” Wang said.
Organizers said the event is about making sure that when a storm threatens the area, families already know their plan.
Information from the event is available on CPRA’s website. Hurricane season runs through Nov. 30.
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BATON ROUGE, La. (WAFB) – Louisiana homeowners can get financial help to upgrade their roofs and ensure they can better stand up to strong storms.
According to the Louisiana Department of Insurance, registration for next Louisiana Fortify Homes Program lottery opens at 8 a.m. on Monday, June 1. The registration period will stay open through 5 p.m. on Friday, June 19.
Under the latest round of the program, 3,000 grants of up to $10,000 will go out. After applying, homeowners will get placed into a lottery and will be randomly selected.
There are many specific benefits of having a roof upgraded through the Louisiana Fortify Homes Program. Officials said the roofs have stronger shingles that can protect against hail up to two inches wide, sealed roof decks to help prevent water damage, and stronger edges to keep wind from getting underneath.
Homeowners with a fortified roof can also get a certificate to receive a discount on insurance premiums.
“At the end of the day, this program is about more than just roofs,” said Louisiana Insurance Commissioner Tim Temple. “It is about protecting families, it is about strengthening communities, and it is about putting Louisiana in a stronger position—both physically and economically—to face the challenges ahead.”
Only people living in Ascension Parish, Livingston Parish, Assumption Parish, Tangipahoa Parish, Acadia Parish, Calcasieu Parish, Cameron Parish, Iberia Parish, Jefferson Parish, Jefferson Davis Parish, Lafayette Parish, Lafourche Parish, Orleans Parish, Plaquemines Parish, St. Bernard Parish, St. Charles Parish, St. James Parish, St. John the Baptist Parish, St. Martin Parish, St. Mary Parish, St. Tammany Parish, Terrebonne Parish, and Vermilion Parish are eligible to apply for the latest round of the program.
People living in a newly built home, mobile home, or condominium are not qualified.
For a detailed list of eligibility requirements, click here.
If a person registered for the program previously, he or she must do so again. The person will also need to provide the following information:
- A homestead exemption on the primary residence.
- A policy of insurance that provides wind coverage for the primary residence.
- A flood insurance policy on the primary residence if it is in a special flood hazard area.
For more information about applying, click here.
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Click here to subscribe to our WAFB 9 News daily digest and breaking news alerts delivered straight to your email inbox.
Watch the latest WAFB news and weather now.
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