Law Firms Using Public Contracts to Divert Money to Democrats: Consumer Advocates

O.H, Skinner, executive director of Alliance for Consumers and former Solicitor General of Arizona. Courtesy of O.H. Skinner.

A consumer advocacy organization is sounding the alarm on major law firms siphoning money out of conservative states and into radical, left-wing agendas.

The Alliance for Consumers (AFC) has sent letters (pdf) to Republican governors warning them that major law firms are using public contracts with their state and local governments to fund Democrat officials and organizations while diverting money away from victims and consumers.

In the letter, AFC Executive Director O.H. Skinner discusses its consumer protection report on what it called the “Shady Trial Lawyer Pipeline,” (pdf) in which eight law firms the report labeled the “Shady Eight,” have used consumer protection contracts “to funnel money into aggressively partisan political giving.”

“The Consumer Protection Report exposes how these trial lawyers rely on public contracts with states and local governments that often lack basic protections (including basic ethics protections) to tighten their hold, all while diverting money away from everyday consumers and sending 99% of their federal donations to liberal candidates and committees,” Skinner wrote in the letter.

In the report, the AFC said law firms, which include Morgan & Morgan, Motley Rice, and Maron & Budd, have generated up to $18 million in political donations to Democrat committees and candidates.

“That is the total given by the firms directly, their 1,400 or so combined lawyers, and other employees and staff,” the report states. “Of that, over $3 million was generated by the firms during 2021 and 2022.”

Partisan Political Giving Supported by Money From State Contracts

In 2021 and 2022, the report said these firms continued to donate strongly.

According to the report, the law firms sent 99 percent of their over $3 million in combined federal donations to Democrat campaigns and allied committees.

“The lowest contribution percentage given by a member of the Shady Eight to Democrats and their allies between 2021 and 2022 was from Grant & Eisenhofer, with 97 percent of donations going to support Democratic campaigns and allied political committees,” the report said, while other firms demonstrated a 100 percent commitment to Democrats.

According to the Federal Election Commission’s (FEC) recorded donations, Lieff Cabraser, another law firm, sent more than 50 percent of its over $750,000 in combined donations to support Democratic senatorial candidates in 2021 and 2022.

This includes sending more than $100,000 to Sen. Raphael Warnock (D-Ga.).

According to the report, in 2021 and 2022, Motley Rice generated over $750,000 in combined FEC donations, with 55 percent used to fund Democratic candidates for U.S. Senate.

The report listed U.S. Senate Majority Leader Chuck Schumer (D-N.Y.), Sen. Catherine Masto (D-Nev.), and Warnock among the top five recipients of the law firms’ donations.

Morgan & Morgan donated $2.2 million to President Joe Biden’s campaign and to the Democrat National Committee, $1 billion of which came from Morgan & Morgan founder John Morgan, who, according to the AFC, bragged about flying Biden’s brother, Frank, to Biden’s inauguration.

“This partisan political giving is supported by money from lucrative public contracts signed by politicians and public officials, money that really belongs in the pockets of taxpayers and consumers,” the report states.

The report states that the public contracts are missing basic ethical protections resulting in them being a gateway to the pipeline.

In an interview with The Epoch Times, Skinner said his rationale for sending the letters only to Republican governors is that they will be more motivated to act “because there’s no silver lining for them.”

“I don’t expect Democrat officials to be quick to action because it’s tantalizing that these law firms are giving large donations to help federal Democrats push their left-wing priorities,” Skinner said. “If you’re a conservative official, then you and your constituents would want to have no part in that, so that’s why we’re raising awareness to them.”

In March, Republican attorney generals in Kansas and Iowa terminated their contract with Morgan & Morgan, while Montana’s attorney general parted ways with Motley Rice.

Morgan & Morgan Denies It Only Donates to Democrats

The Epoch Times contacted each law firm for comment.

Morgan & Morgan was the only firm to respond, denying that it only donated to Democrats.

“Your assumptions are incorrect and just wrong,” a spokesperson for Morgan & Morgan said. “In Florida alone, our attorneys have given and raised millions to the leaders of the Republican legislature. Our firm also represented the last two senate presidents and the party in elections and recounts.”

When asked for more specifics, the firm didn’t respond.

In response to Morgan & Morgan’s statement, Skinner said: “The federal-level donations make very clear the ideological leanings of these firms. When you give 98 or 99 percent to one side at a national level, that is something that everyone can understand all across the nation. Those numbers are striking and speak for themselves.”