Meanwhile, a different state leader also has produced $2 billion gains. Attorney General Darrell McGraw has scored a bonanza for taxpayers by suing harmful industries and shady exploiters.
Investigative reporter Paul Nyden spelled out this remarkable record:
In his biggest case, McGraw sued 23 tobacco corporations because cigarettes sicken and kill thousands of West Virginians, incurring huge state medical expense. Former Gov. Gaston Caperton opposed the lawsuit, and former Kanawha Circuit Judge Irene Berger threw out McGraw’s initial attempt. But he persisted. Finally, in 1998, McGraw won a historic $1.7 billion judgment, payable over 25 years — plus $200 million more in a later action.
Instead of waiting many years for the remainder of installment payments from cigarette makers, the state reaped an immediate $900 million in 2007 by selling bonds, to be paid off by incoming tobacco money. This windfall salvaged the bankrupt Teachers’ Retirement Fund and shored up other state programs.
In his second-largest victory, McGraw forced 15 major coal firms to pay the state $56.6 million because they had let subcontractors operate their mines, thus ducking workers’ compensation premiums and other taxes on employees.
Third largest was a $15.8 million settlement from Eli Lilly and Co. in 2009 because it had marketed a schizophrenia drug for unapproved treatments. Fourth largest was $10 million from Purdue Pharma for pushing the addictive OxyContin drug onto West Virginians — and the state also got an additional $24 million from a second, nationwide OxyContin penalty. McGraw has 116 cases in the works. He routinely collects multitudes of smaller winnings — such as $214,000 in refunds for 226 West Virginians who were fleeced by ‘‘debt relief’’ outfits. Last month, he sued a credit card company for abusive practices. His proceeds have underwritten numerous state benefits, such as low-cost health insurance for children and day-report centers to let nonviolent offenders stay out of cells. The attorney general has been somewhat controversial during his long career in West Virginia government, but he’s one of only two leaders to achieve the amazing feat of gaining $2 billion for the state’s people. That’s impressive.
Post a Comment
