The WSJ (sub req.) is reporting the California Insurance Commissioner is hiring a San Diego class action firm
....to lead a legal fight against insurance brokers and insurers who the firm may accuse of cheating workers and other consumers by placing insurance and other benefits packages in the hands of insurers paying the biggest commissions, not providing the best prices and terms.... (my emphasis)
Doesn't California have its own law enforcement division? Doesn't the insurance regulator have an enforcement division? Why do Californian's pay taxes? It will be interesting to look at the agreement between the state and the law firm.
Update: Other states are getting into this too....
Update 2: George Wallace at D&E tell us that California does, in fact, have both taxes and an Attorney General. He explains the rational for why the state might employ outside (non-civil servant)counsel. He also comments on the choice of the law firm (which I did not name from the WSJ article) which has a famous securities fraud specialist as a partner. I'll not name him either so that you will have to read George's post.
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