Class action lawsuit alleges lawyers are extorting money for ADA compliance

A recent federal class action lawsuit out of Oregon has brought to light a cunning scheme orchestrated by a group of lawyers involving thousands of fraudulent demand letters and lawsuits pertaining to the Americans with Disabilities Act (ADA). The lawsuit targets the Tennessee-based law firm of Wampler, Carroll, Wilson & Sanderson, Wade Law, Oregon attorney Jessica Molligan, and others, seeking damages exceeding $80 million.

This legal action stems from an investigation conducted by KGW that unveiled a plethora of small businesses in the Portland area receiving demand letters threatening legal action if they did not rectify ADA non-compliance issues and pay around $10,000 in attorney fees. The lawsuit, on behalf of small businesses like Baek Family Partnership, AB Hollywood, MY, LLC, and the Penney Kim Trust, alleges that this operation spread across more than 15 states, resulting in over four thousand demand letters and lawsuits.

As discovered by KGW, the lawyers at the center of this scheme, along with attorney B.J. Wade from Memphis, followed a systematic approach. They incentivized individuals with disabilities by paying them $200 for each business they visited and then hired a local attorney to send threatening letters to the businesses, demanding ADA compliance and the payment of attorney fees to avoid legal repercussions.

The core allegation of the lawsuit is that profit was the primary motive for these lawyers, rather than genuine efforts to identify and rectify accessibility issues at businesses. The individuals with disabilities hired to assess businesses were labeled as “Fake Testers,” who were directed to visit specific properties, make purchases, and upload receipts without addressing actual ADA violations. It is claimed that these Fake Testers were sent to properties listed in an outdated database, often including permanently closed businesses.

In a striking revelation, the lawsuit declares the scheme to involve wire fraud and perjury, affecting over four thousand victims across the nation and resulting in significant financial losses. The lawsuit also names John Does and Conner Slevin, who were allegedly involved as Fake Testers, as defendants.

Previous statements from Slevin indicate his regret over participating in this operation, highlighting his realization that he was merely a pawn in a larger scheme. Slevin has taken legal action against his former lawyer, Jessica Molligan, currently under investigation by the Oregon State Bar for potential ethics violations.

Efforts to obtain responses from the Wampler firm, Molligan, and attorney B.J. Wade are ongoing, and the story will be updated accordingly. The unfolding class action lawsuit sheds light on an elaborate plot to exploit ADA compliance regulations for financial gain, leaving numerous small businesses bearing the burden of exorbitant fees and legal threats.