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Baron and Budd Files Class Action Lawsuit Against MHN Government Services and Managed Health Network Over Misclassification of Independent Contractors and Failure to Pay Overtime

SAN FRANCISCO –(October 3, 2012) –Yesterday, the national law firm of Baron and Budd filed a class action lawsuit against MHN Government Services, Inc. (MHNGS) and Managed Health Network, Inc. (MHN) regarding the misclassification of employees as independent contractors and the failure to pay those employees overtime. Filed in the Northern District of California, the case alleges that MHNGS and MHN violated the Fair Labor Standards Act (FLSA) by knowingly misclassifying workers to avoid paying lawful overtime wages. Baron and Budd attorneys Allen Vaught and Mark Pifko represent the plaintiffs in the case.

“These overtime violation issues are much more common than people think,” said Allen Vaught, head of Baron and Budd’s overtime violations/FLSA litigation section. “Many companies rely on the workers’ lack of knowledge when it comes to the FLSA and actively choose to misclassify workers in the interest of saving the business money by unlawfully dodging state and federal wage and hour laws, payroll taxes, unemployment insurance taxes and other state and federal requirements.”

MHNGS and MHN work at various U.S military bases as subcontractors to the United States Department of Defense. MHNGS and MHN hire individuals to work as Military & Family Life Consultants, or MFLC’s, in order to fulfill those governmental contracts.  Though the companies label MFLC’s as “independent contractors,” analysis of the workers’ job responsibilities revealed that the workers should be classified as employees under the FLSA. Because of this misclassification, the workers were not paid overtime even though they frequently worked more than 40 hours in a workweek. Under FLSA definitions and exemption rules, these workers should have been considered employees and should have been paid overtime.

If you suspect that you, a friend or family member may have been misclassified by your employer as an independent contractor and were not paid all overtime wages required by law, please contact attorney Allen Vaught to learn more about your rights at 1.866.495.1255 or via email at avaught@baronbudd.com. Your initial consultation is free of charge and confidential.

Learn more about overtime pay violations, misclassification of employees, the FLSA and your rights in the workplace at http://baronandbudd.com/areas-of-practice/overtime-violations/.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with over 30-years of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. http://baronandbudd.com

Tagged Allen Vaught, FLSA, Overtime Violations


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Baron and Budd Announces Win in Overtime Violations Case Regarding Misclassification of Independent Contractors

DALLAS –(August 23, 2012) –The national law firm of Baron and Budd is announcing a victory for a group of mechanics in an overtime violations lawsuit. In the case, a group of mechanics were misclassified by their employer as independent contractors to avoid paying the workers lawful overtime wages. However, under the Fair Labor Standards Act (FLSA), these workers should have been classified as employees, and thus should have been paid overtime wages for the preceding three-year period. The workers were represented by Baron and Budd attorney Allen Vaught, head of the firm’s overtime violations litigation section in addition to co-counsel, Ed Sullivan, of the law firm of Oberti Sullivan.

In the case, the group of mechanics, labeled “independent contractors” by their employer, was generally paid a flat salary. Even though the mechanics typically worked 60 hours a week, they were not paid overtime. Yet, under the FLSA, the mechanics should have been defined as employees rather than contractors. An agreement between an employer and a worker for the worker to be an independent contractor and not be paid overtime is not enforceable if the facts show that the amount of control placed on the worker really makes him an employee.  In other words, the right to overtime pay can never be waived by agreement of the employer and worker.  Based on these well established principles, a judge and jury returned a verdict that these mechanics were able to obtain their unpaid back wages plus a penalty known as liquidated damages for the employer’s violation of the FLSA in the lawsuit.

“Many workers may not realize they are due overtime pay, but this case shows that it is more common than people realize,” said Allen Vaught. “Even though your employer may call you an ‘independent contractor’ that does not mean that you are still not due overtime wages and damages because the right to overtime pay can never be waived – not even by agreement between the employer and the employee.”

Under the FLSA, independent contractors are essentially in business for themselves and do not rely entirely on a single business entity for their income and are therefore exempt from overtime pay.  Since many workers are not familiar with the specific aspects of the FLSA, they are unaware of the law’s definitions of an independent contractor compared to an employee.  Moreover, many workers do not realize that they cannot waive their right to overtime pay merely be agreeing to be labeled as an independent contractor.  What matters is what they actually do, not what the employer calls them.  Many businesses rely on that lack of knowledge to utilize unfair bargaining power and misclassify employees and avoid paying overtime wages.

If you think that you, a friend or family member may be misclassified as an independent contractor rather than an employee, and therefore not paid all overtimes wages required by law, then please feel free to contact attorney Allen Vaught at 1.866.495.1255 or via email at avaught@baronbudd.com for a free consultation.

Your inquiry is confidential and the FLSA protects employees from being fired or retaliated against for investing possible violations.

Learn more about overtime violations, employee misclassification, the FLSA and your rights at http://baronandbudd.com/areas-of-practice/overtime-violations/.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. http://baronandbudd.com


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Scott Summy of Baron and Budd Selected for Inclusion in The Best Lawyers in America 2013

DALLAS—(September 18, 2012) –Scott Summy, shareholder at the law firm of Baron and Budd, has been selected by his peers for inclusion in The Best Lawyers in America 2013 in the area of Mass Tort Litigation/Class Action for Plaintiffs. Summy heads the firm’s water contamination litigation section and has been named to the prestigious peer review publication every year since 2006.

“I am very honored to be recognized by my fellow attorneys in this prestigious publication,” said Summy. “Baron and Budd has always been dedicated to protecting people against corporate negligence, and I am proud to continue that tradition.”

Best Lawyers is one of the oldest and most respected peer review publications in the legal profession. Each year, Best Lawyers compiles lists of the nation’s most prominent lawyers by conducting confidential and exhaustive peer surveys of leading lawyers throughout the country. 

Under Summy’s leadership, Baron and Budd’s water contamination practice has grown into one of the most recognized in the nation. Summy serves on the Plaintiffs’ Steering Committee and Plaintiffs’ Executive Committee in the litigation against BP for the 2010 Gulf oil spill. The PSC procured a historic settlement on behalf of numerous individuals and business owners who were harmed by the oil spill. Earlier this year, Summy negotiated a preliminary settlement in national atrazine litigation, the first of its kind in the country, that would provide $105 million to hundreds of public water providers struggling with atrazine contamination in their source water.

In 2008, Summy helped negotiate the first multi-jurisdictional MTBE groundwater contamination settlement in the U.S. Working on behalf of more than 150 plaintiff public water systems in 17 states, he served on the leadership committee that negotiated a $420 million settlement that would provide much-needed funds to clean up contaminated water. Baron and Budd was nominated for the prestigious “Trial Lawyer of the Year” Award from the Public Justice Foundation in 2009 for their work in this case.

Tagged Best Lawyers, Scott Summy


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Baron and Budd Selected to the National Law Journal’s Plaintiffs’ “Hot List” for Eighth Time

DALLAS –(October 2, 2012) – The national law firm of Baron and Budd was selected to the National Law Journal’s prestigious Plaintiffs’ “Hot List" for the eighth time since the list was established ten years ago. Each year, the National Law Journal requests nominations and completes an exhaustive analysis before selecting law firms for this legendary highly regarded honor. The annual list recognizes plaintiffs’ firms that have done exemplary, cutting-edge work representing people or entities harmed by corporate misconduct. Baron and Budd was one of only 19 firms selected for inclusion this year.

In yesterday’s announcement, the National Law Journal noted the breadth of Baron and Budd’s work, stating "the limelight for Baron and Budd stretched across industries during the past year — including a deepening of the firm’s role in financial-sector class actions." The announcement also highlighted two of Baron and Budd’s most significant and recent cases: the precedent-setting settlement in the BP oil spill litigation and a consumer class action against JP Morgan Chase & Co. Baron and Budd shareholder Scott Summy served on the BP oil spill’s steering committee that reached a $7.8 billion settlement with BP PLC in March 2012 and the firm sat on the plaintiffs’ executive committee in the Chase overdraft litigation, resulting in a preliminarily approved nationwide settlement of $110 million.

"I am so proud to be selected for such a distinguished honor," said Russell Budd, president and managing shareholder of Baron and Budd. "As a law firm dedicated to protecting the rights of anyone who has been harmed, it’s very rewarding to be recognized for our willingness to take on new and meaningful litigation on behalf of consumers who have been taken advantage of in so many ways.”

Baron and Budd remains at the forefront of litigation on a national scale. The firm continues to actively represent businesses and individuals harmed by the BP oil spill and consumers harmed by a number of banking fraud issues as well as maintaining its cornerstone practice representing victims of asbestos exposure.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with over 30-years of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. http://baronandbudd.com

Tagged "Hot List", National Law Journal


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Baron and Budd Files Overtime Wage Violations Lawsuit Against Sunbelt Rentals

DALLAS – (September 25, 2012) – Last week, the national law firm of Baron and Budd filed a lawsuit against construction equipment rental company Sunbelt Rentals, Inc. regarding alleged violations of overtime wage laws. The plaintiffs, who worked in two of Sunbelt’s retail stores, claim that: Sunbelt did not pay them adequate overtime wages as required by law and forced them to work off-the-clock before or after a shift, required them to work after-hours in the Sunbelt’s 24 hour emergency services operation without pay at times, and improperly deducted pay for lunch periods when they performed work. Baron and Budd attorney Allen Vaught represents the workers in the case.

“Many workers do not realize that their employer is not paying them fairly,” said attorney Vaught, head of Baron and Budd’s overtime violations litigation section. “Employers cannot force, or even permit, workers to perform work ‘off-the-clock’ or during lunch breaks without pay. Sadly, this tactic is more common than people might think by employers in an attempt to save money on employee wages.”

Sunbelt Rentals is a national chain with more than 300 stores across the country. Though this lawsuit represents a violation at just two stores, it is likely that similar violations have occurred at other Sunbelt stores. After investigation, Baron and Budd has found that virtually every position at Sunbelt retail stores may be affected, including customer service representatives, dispatchers, assistant store managers and drivers.

According to the Fair Labor Standards Act (FLSA), all hourly workers must be paid for all hours worked, including preparing equipment for the day or booting up their computers, and if the employer deducts pay for a lunch period, they generally must be given a full, uninterrupted 30-minute lunch period. If an employer violates the FLSA, workers can receive their unpaid back wages plus liquidated damages of double the amount owed. 

If you think that you, a friend or family member may have not been paid proper overtime wages while working for Sunbelt Rentals or believe your overtime wage rights are being violated by any employer, please feel free to contact attorney Allen Vaught at 1.866.495.1255 or via email at avaught@baronbudd.com.

Your initial case evaluation is free and confidential.

Get more information and the latest updates about the lawsuit on our Facebook page http://www.facebook.com/SunbeltRentalsOvertimeLawsuit.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. http://baronandbudd.com


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Baron and Budd Attorneys File Class Action Against Abbott Laboratories Concerning Ensure Muscle Health and Ensure Clinical Strength Products

LOS ANGELES – (August 22, 2012) Baron and Budd attorneys filed a deceptive labeling class action lawsuit today against Abbott Laboratories concerning the company’s “Ensure Muscle Health” and “Ensure Clinical Strength” products.  The lawsuit alleges that Abbott Laboratories engages in deceptive and misleading practices in connection with the marketing of its products and charges the company with violations of multiple laws. The complaint was filed on behalf of Michael J. Otto of California and a class of similarly situated consumers across the country who purchased Ensure Muscle Health or Ensure Clinical Strength drinks. Baron and Budd attorneys Roland Tellis and Mark Pifko serve as counsel in the lawsuit.

According to the complaint, Abbott capitalizes on the fears of mature Americans who are worried about muscle loss, promising that drinking the products alone will “help rebuild muscle and strength naturally lost over time.”  To build consumer trust, Abbott touts the purported health benefits of these products with invented, pseudo-scientific terms such as “Revigor,” and proclamations like, the “#1 doctor recommended brand,” the lawsuit states.  As alleged in the lawsuit, to further establish credibility for the company’s claims, Abbot also uses phrases such as “clinical nutrition.” 

However, as alleged in the lawsuit, nowhere on the packaging of the products does Abbott disclose that the products cannot help rebuild muscle and strength in the general population of consumers to whom the products are sold — including in Abbott’s target market of healthy adults — unless the products are used in combination with a regular exercise program.  Instead, Abbott chose to selectively omit this material information from the labels for the Products to increase sales by inducing the general population of consumers who will not benefit from the products to purchase and consume them anyway, the lawsuit states.

“It’s hard to imagine a more personal affront than deceiving people about what they put in their bodies,” said Baron and Budd attorney Mark Pifko. “A sophisticated company like Abbott should be held accountable for knowingly confusing and misleading its  customers.”

Baron and Budd is a nationally recognized plaintiffs’ law firm with more than 30 years’ experience fighting to protect what’s right for consumers. The firm prides itself on remaining on the cutting-edge of meaningful litigation that protects consumers from negligent companies. Last year, Baron and Budd served on the plaintiffs’ steering committee in the Bank of America bank overdraft fee litigation that resulted in a $410 million settlement for consumers and forced Bank of America and other financial institutions to change overdraft fee policies. Since its expansion in 2011, the firm’s Los Angeles office has taken the lead on a number of high profile consumer lawsuits, including cases against companies in the banking, automotive and food product industries. 

To learn more about the Ensure lawsuit, visit the firm’s website at http://www.baronandbudd.com

Tagged Deceptive Advertising, Ensure, Mark Pifko, Roland Tellis


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Allen Vaught of Baron and Budd Selected as Texas Lawyer “Litigator of the Week” for Victory in Overtime Lawsuit

DALLAS –(September 11, 2012) –Allen Vaught, Baron and Budd attorney and head of the firm’s overtime violations litigation section, has been selected as this week’s “Litigator of the Week” by legal publication Texas Lawyer for his victory in an overtime wage violations lawsuit. In the case, Vaught represented a group of mechanics that were misclassified as independent contractors by their employer to avoid paying all overtime wages required by the Fair Labor Standards Act (FLSA). Under this law, the mechanics should have been classified as employees, and therefore should have been paid overtime wages for the preceding three-year period. Co-counsel, Ed Sullivan, of the law firm of Oberti Sullivan, also represented the mechanics in the case.

“I am honored to have been selected as ‘Litigator of the Week’ by Texas Lawyer,” said Allen Vaught. “I am glad these guys got their day in court and were able to recover the wages they are owed by law. Most employees don’t understand the legal difference between employees and independent contractors, which can have a serious impact on a worker’s pay.”

The mechanics, called “independent contractors” by their employer, were generally paid a flat salary for their work on a weekly basis. Even though the mechanics generally worked 60 hours a week, they were not paid overtime wages. But under the FLSA definitions, the mechanics should have been labeled as employees of the company instead of independent contractors. Under the law, the right to overtime pay cannot be waived by an agreement between an employer and an employee. Based on these legal principles, a judge and jury ruled that these mechanics are allowed to obtain their unpaid back wages plus a penalty, known as liquidated damages, for their employer’s violation of overtime wage laws.

According to the FLSA, independent contractors are, essentially, in business for themselves and do not solely rely on a single business entity for their income and, therefore, are exempt from overtime wage laws. However, many workers are not familiar with the specifics of the FLSA and are unaware of the law’s definitions of an employee compared to an independent contractor.  In addition, many workers do not know that they cannot waive their right to overtime pay by agreeing to be called an independent contractor.  What matters is a worker’s actual responsibilities, not what the employer calls the worker. 

If you suspect that you, a friend or family member may have been misclassified as an independent contractor instead of an employee and were not paid all overtime wages required by law, then please contact attorney Allen Vaught at 1.866.495.1255 or via email at avaught@baronbudd.com. Your initial consultation is free of charge and confidential.

Learn more about overtime pay violations, misclassification of employees, the FLSA and your rights in the workplace at http://baronandbudd.com/areas-of-practice/overtime-violations/.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with a 30-year history of "Protecting What’s Right" for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, unsafe drugs and medical devices, Chinese drywall, deceptive advertising, consumer financial fraud, securities fraud and asbestos cancers such as mesothelioma. http://baronandbudd.com


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Baron and Budd Sponsors Gala Celebration of Hope Dinner at 2012 Mesothelioma Applied Research Foundation Symposium

WASHINGTON, D.C (July 10, 2012) – This week, the Mesothelioma Applied Research Foundation will hold its 9th annual Meso Foundation Symposium, a conference for the mesothelioma community, including patients, families, medical experts and asbestos advocates.  The event will feature presentations by experts in the medical field, question and answer sessions, and a chance to meet elected officials who are influential in asbestos-related policy.

The three-day event kicks off Wednesday evening with a Celebration of Life memorial ceremony for family and friends who have lost loved ones to mesothelioma. The following two days will be filled with discussions on the latest medical breakthroughs, fundraising efforts and caregiving techniques.

Representatives from Baron and Budd, one of the first law firms to successfully handle a mesothelioma lawsuit, will attend the Gala Celebration of Hope Dinner Thursday, July 12. The firm is a proud sponsor of the dinner and reception. Dr. Axel Hanauske and Rich Mosca will speak at the event.

Dr. David Sugarbaker, Chief of Thoracic Surgery at the Brigham and Women’s Hospital in Boston, will be receiving the Pioneer Award at the dinner. Dr. Sugarbaker founded the International Mesothelioma Program (IMP) at Brigham and Women’s, one of the largest programs of its kind. The IMP offers clinical, research and support programs, with a clinical focus on developing treatments that can significantly extend the lives of mesothelioma patients. Baron and Budd was a cornerstone donor Executive Advisory Board member of the IMP.

Other awards being given are the Bruce Vento Hope Builder Award to Bonnie Anderson and the Volunteer of the Year Award to Janice Malkotsis and Erica Lacono.

The Meso Foundation, formally known as MARF, is a national non-profit organization committed to ending the suffering caused by mesothelioma.  It provides comprehensive educational, social and medical resources to patients and families with the disease, helping them to obtain the most up-to-date information on treatment options and to connect with mesothelioma treatment specialists, providing them assistance, emotional support and community with others.

To find out more about the 2012 Meso Foundation Symposium and the Mesothelioma Applied Research Foundation, visit www.curemeso.org

The national mesothelioma law firm of Baron & Budd, P.C. has been “Protecting What’s Right” for asbestos sufferers and their families for nearly 40 years. As one of the first law firms to successfully litigate an asbestos lawsuit, Baron & Budd continues to actively represent veterans, industry workers and others who are suffering as a result of exposure to asbestos. Contact Baron and Budd at 1.866.855.1229 for additional information on mesothelioma treatments, mesothelioma cancer doctors and treatment centers and mesothelioma attorneys.

Tagged Asbestos, Mesothelioma & Asbestos, Mesothelioma Applied Research Foundation


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Baron and Budd Proud to Be a Finalist for Public Justice “Trial Lawyer of the Year Award”

CHICAGO –(August 1, 2012) –The national law firm of Baron and Budd, P.C. is honored to have been selected as one of four finalists for the Public Justice Foundation’s prestigious 2012 “Trial Lawyer of the Year Award” for its work on national litigation surrounding bank overdraft fees. In these cases, Baron and Budd took on banking giants Bank of America, JP Morgan Chase and others. The firm’s efforts, along with those of other national law firms, are credited with forcing the banking industry to change its policies regarding overdraft fees. This is the third time in the past five years that Baron and Budd lawyers have been selected as finalists for the prestigious award. The winner was announced last night at Public Justice’s Annual Gala and Awards Dinner in Chicago.

“I am proud that Public Justice honored our firm as a finalist,” said Russell Budd, president and managing shareholder of Baron and Budd. “We congratulate the lawyers in the Missouri case that helped hold Fluor Corporation accountable for exposing children to lead poisoning for being honored with this award.”

This prestigious award is given out each year by the Public Justice Foundation, a non-profit organization dedicated to keeping the courtroom doors open to Americans who have been harmed by corporate malfeasance. The organization’s “Trial Lawyer of the Year Award” honors the lawyer or group of lawyers who have made the most significant contribution to the public interest through successful precedent-setting litigation.

Baron and Budd was one of the chief negotiators in the bank overdraft litigation against national banking giant JP Morgan Chase, which resulted in a $110 million settlement and forced Chase to change its overdraft fee practices to benefit Chase customers. As part of the settlement, Chase also agreed not to charge overdraft fees on transactions of $5 or less. The firm was also one of the leaders in the litigation surrounding the $410 million settlement with Bank of America, which forced the bank to change its overdraft fee policies in favor of consumers and helped set the standard for similar changes at other banks. Litigation against several other banks surrounding the overdraft fee issue is ongoing.

The overdraft fee litigation focused on the banking industry’s deceptive overdraft fee practices, which were set up to intentionally maximize the number of fees charged to consumers. Before litigation forced them to change, banks would routinely rearrange debit card transactions from highest to lowest dollar amount to deplete funds more quickly. Under this method, customers incurred excessive overdraft fees.

Baron and Budd previously won the “Trial Lawyer of the Year Award” in 2007 for the firm’s outstanding work on the groundbreaking TCE groundwater contamination case in Tucson, Arizona, a 21-year legal battle that helped define Arizona water pollution law. The firm was nominated in 2008 for its work on the national MTBE water contamination litigation, which resulted in a precedent-setting $420 million settlement with some of the nation’s largest oil companies.

The law firm of Baron & Budd, P.C., with offices in Dallas, Baton Rouge, Austin and Los Angeles, is a nationally recognized law firm with a 30-year history of “Protecting What’s Right” for people, communities and businesses harmed by negligence. Baron & Budd’s size and resources enable the firm to take on large and complex cases. The firm represents individuals, governmental and business entities in areas as diverse as water contamination, Gulf oil spill, Qui Tam, California Proposition 65 violations, dangerous medications and medical devices, Chinese drywall, insurance claims, commercial litigation, consumer fraud, securities fraud and asbestos-related illnesses such as mesothelioma. Learn more about the mesothelioma attorneys at Baron & Budd.


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