McClenny Moseley confronted fines, a legal investigation, authorized motion, and now apparently chapter

Texas headquartered regulation agency McClenny, Moseley & Associates (MMA), which has confronted fraud allegations and multi-million-dollar fines over “tech-enabled” hurricane lawsuits, has filed for chapter.
The regulation agency shot to infamy within the Louisiana insurance coverage neighborhood final yr, when it transpired the enterprise had signed up doubtlessly 1000’s of policyholders for hurricane-related dwelling insurance coverage claims, in lots of instances with out their data.
Chapter 11 chapter safety paperwork signed by MMA Legislation Agency managing companion Zach Moseley, dated right now, indicated the enterprise has upwards of $100 million in property and $10 million in liabilities.
“In case your property are 10 occasions your liabilities, how are you bankrupt? It will likely be very fascinating to see if that is only a mistake, or whether or not MMA actually has over $100 million in property,” Matthew Monson, The Monson Legislation Agency founder and supervisor and the tipster who first introduced the regulation agency to the Louisiana Division of Insurance coverage’s (LDI) consideration, queried in a Linkedin publish on Tuesday.
MMA’s “unlawful scheme” like nothing insurance coverage commissioner had seen earlier than
The LDI slapped MMA with fines totaling $2 million in February 2023. The agency had filed 1,500 hurricane lawsuits in simply three months because it regarded to mass settlement ways. Many insureds weren’t conscious that the agency claimed to characterize them, the LDI discovered.
Former Louisiana Commissioner of Insurance coverage Jim Donelon described MMA’s “unlawful scheme” as “like nothing I’ve ever seen earlier than”.
MMA’s aggressive advertising and marketing ways reached Louisiana insurance coverage trade professionals, who beforehand advised IBA they’d obtained quite a few unsolicited messages from the agency urging them to file lawsuits for storm harm.
Outdoors of its regulatory wranglings, MMA has discovered itself dogged by authorized actions, together with a category motion spearheaded by Monson’s spouse, Katherine Monson. The enterprise has sought to enchantment a $10 million default judgment in a case introduced by PCG Claims.
MMA was not instantly out there for remark.
Obtained a perspective on hurricane dwelling insurance coverage fraud or MMA’s chapter submitting? Go away a remark beneath
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