• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

1

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

2

'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032

3

Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there

Scruggs guilty plea – but will he cooperate?

By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
By
Roger Parloff
Roger Parloff
Down Arrow Button Icon
March 14, 2008, 9:15 PM ET

The surprise guilty plea this morning of mega-tort lawyer Richard F. “Dickie” Scruggs leaves a huge unanswered question: will Scruggs cooperate?

The unusually short plea agreement says nothing one way or the other about cooperation. (Scruggs’ law partner Sid Backstrom also pled guilty today, and his specifies that he will cooperate. The Clarion-Ledger is reporting that Scruggs’ son, David Zachary Scruggs, will get deferred prosecution, though he’ll have to surrender his law license. [CORRECTION/UPDATE: The C-L did briefly report that, but it turned out to be inaccurate, and they quickly deleted it from their web site article. Evidently Zach Scruggs is heading for trial, as things stand.–RHP 3/18/08]

A great many people in Mississippi and national politics are undoubtedly waiting with bated breath to learn whether Scruggs plans to cooperate. A lawyer in the office of John Keker, Scruggs’ lead counsel, declined all comment.

Earlier this year, federal prosecutors in Los Angeles concluded a plea deal with class-action impresario Bill Lerach which did not require him to cooperate–a deal also negotiated by Keker–but such deals are rare.

In this morning’s plea, Scruggs admitted conspiring to pay a $40,000 to bribe to state circuit judge Henry Lackey of Oxford last year, who was presiding over a fee-dispute case filed against him by a law firm that had once been part of his Scruggs Katrina Group. That was a joint venture that brought cases for policyholders who suffered damage in Hurricane Katrina.

But Scruggs has not yet revealed what, if anything, he knows about another alleged attempt to corruptly influence a judge, which prosecutors contend occurred in early 2006. That incident involves a still sitting judge in Jackson, a former district attorney there, and, in a bit part, Scruggs’ brother-in-law Trent Lott, the former U.S. Senator. None of those individuals has been charged with wrongdoing and all have denied committing any.

But if Scruggs were to ever start talking, the area of greatest interest to any historian, certainly, would be the unexpurgated story of his most famous case–the assault upon the tobacco industry in the mid-90s. Scruggs’ multifaceted campaign in that case–including lawsuits, public relations campaigns, and political pressure– culminated in a series of settlements under which cigarette makers agreed to pay the states about $246 billion over 25 years, and to pay the plaintiffs attorneys more than $13 billion. Scruggs’s share of the fees reportedly came to more than $850 million.

On the other hand, even if Scruggs witnessed anything untoward in that campaign, and even if he were willing to tell prosecutors about it, prosecutors might be barred from pursuing it at this point by statutes of limitations.

Why would anyone think something untoward might have occurred? As a result of fee-dispute litigation relating to the tobacco case, it has come to light that Scruggs is still paying significant shares of his attorneys fees from that case to farmer and grain storage businessman P.L. Blake, whose role in the litigation remains unclear. (Under the tobacco settlement, attorneys fees are parcelled out over about a 25-year period, at a rate of between $500 million and $750 million a year.)

Scruggs and Blake testified in 2004 and 2005 that Blake provided oral political intelligence to Scruggs, though neither could recall concrete examples. From 1993 to 1998 Scruggs had paid Blake loans totalling about $785,000 in increments of $5,000 to $25,000 per month.

In the first year after the tobacco settlements were concluded, Scruggs paid Blake $10 million, out of which Blake paid back Scruggs’ earlier loans with interest. (Scruggs wired the $10 million to his friend Joey Langston, who then wired the money to Blake, though neither Scruggs, Langston, nor Blake could recall why they did it that way in their depositions).

Scruggs then started paying Blake $468,450 per quarter, at which rate the total paid out to Blake would eventually approximate $50 million. (Stories about the Blake payments have previously appeared in David Rossmiller’s Insurance Coverage Blog, the New York Times, and the Wall Street Journal.)

Correction: Earlier version had spelling error, caught by commenter Ed of Topeka, KS. Thanks, Ed.

About the Author
By Roger Parloff
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Man in a white shirt and jacket.
InnovationBrainstorm Tech
Marc Lore’s robots make 500 burrito bowls an hour. A human can make 45
By Amanda GerutJune 9, 2026
7 hours ago
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
CryptoSam Bankman-Fried
Sam Bankman-Fried formally files for pardon—but White House reiterates that FTX cofounder’s odds are slim
By Camila Grigera NaonJune 9, 2026
9 hours ago
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Wednesday, June 3, 2026
InvestingWall Street
Wall Street dumped nearly $1 trillion in tech stocks by midday—then clawed it back and bought peanut butter and paint
By Eva RoytburgJune 9, 2026
9 hours ago
The entrance to a U.S. Immigration and Customs (ICE) detention facility
North AmericaDepartment of Homeland Security
Texas ICE facility spent $11.5 million on guards, medical services, transportation and meals weeks before the camp even held detainees, GAO finds
By Michael Biesecker, Ryan J. Foley and The Associated PressJune 9, 2026
9 hours ago
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
AIBrainstorm Tech
AI isn’t replacing Hyatt’s salespeople—it’s freeing up a full day of work every week, according to the CEO
By Sharon GoldmanJune 9, 2026
10 hours ago
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
EnergyAutos
America’s grid is reeling. General Motors offers itself as a distributed utility in disguise
By Nick LichtenbergJune 9, 2026
10 hours ago

Most Popular

Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
Asia
Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military
By Kate O'Keeffe and BloombergJune 8, 2026
1 day ago
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
Economy
'We are rapidly running out of time': Watchdog sounds Social Security alarm after 22% cut confirmed for 2032
By Nick LichtenbergJune 9, 2026
14 hours ago
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
Success
Costco CEO Ron Vachris rose from forklift driver to the C-suite without a college degree: ‘Don’t chase a title’ is the career advice that got him there
By Preston ForeJune 8, 2026
2 days ago
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
Environment
Trump, who has repeatedly called climate change fake, is now threatening Brazil with tariffs over the deforestation of the Amazon
By Sasha RogelbergJune 8, 2026
1 day ago
Current price of oil as of June 8, 2026
Personal Finance
Current price of oil as of June 8, 2026
By Joseph HostetlerJune 8, 2026
2 days ago
Current price of oil as of June 9, 2026
Personal Finance
Current price of oil as of June 9, 2026
By Joseph HostetlerJune 9, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.