Firm behind climate lawsuits faces DOJ referral after court finds 'misconduct bordering on criminal'

Federal Judge Paul Diamond referred Hagens Berman to the Department of Justice for potential unlawful conduct, prompting the law firm to appeal to the 3rd Circuit.

The Department of Justice headquarters on Feb. 19, 2020, in Washington, D.C. (Drew Angerer)

Hagens Berman has aggressively pushed back on the allegations and turned to the U.S. Court of Appeals for the 3rd Circuit for relief. The firm accused the judge of bias, noting it had recently sought Diamond’s recusal from the case and claiming the judge could be retaliating.

"To rebut the charge in the court below would risk fomenting even greater ire of the district judge—ire that would be calamitous for petitioners’ clients," Hagens Berman lawyers wrote. "To remain silent is to permit a baseless accusation leveled by an Article III judge no less, to hang like a dark, ignominious cloud over petitioners’ professional reputation."

The clash comes as Hagens Berman continues positioning itself as a go-to firm for high-risk litigation, including environmental cases, even as its track record in that arena shows mixed results.

Last month, the firm filed a class-action lawsuit on behalf of Washington state homeowners against ExxonMobil, Shell, Chevron and other fossil fuel companies. The suit alleges the companies sparked a rise in natural disasters that has driven up homeowners' insurance premiums and claims they mounted a "coordinated and deliberate scheme to hide the truth about climate change and the effects of burning fossil fuels."

People march as they take part in a strike to demand action on the global climate crisis on Sept. 20, 2019, in New York City. (Spencer Platt/Getty Images)

The law firm also lost in a similar case that same year in New York. In that dismissal, the late Judge John Keenan, a Reagan appointee, again found Hagens Berman’s lawsuit was far too expansive.

"The City has not sued under New York law for claims related to the production of fossil fuels in New York," Keenan wrote. "The City brings claims for damages caused by global greenhouse gas emissions resulting from the combustion of Defendants’ fossil fuels, which are produced and used ‘worldwide.’"

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The DOJ review, if upheld by the 3rd Circuit, could now overshadow the firm’s more recent endeavors and raises the stakes for the practice as it continues to take on ambitious cases.

Ashley Oliver is a reporter for Fox News Digital and FOX Business, covering the Justice Department and legal affairs. Email story tips to ashley.oliver@fox.com.

https://www.foxnews.com/politics/firm-behind-climate-lawsuits-faces-doj-referral-after-court-finds-misconduct-bordering-criminal