Lawyer Gloria?Allred?claims up to 75 per cent of victims’ winnings with brutal, restrictive contracts, despite ‘advocate’?claims: sources
Gloria Allred’s law firm fights for women’s rights — but cuts deals so aggressive they “handcuff” clients to her, according to sources and a contract obtained by The Post.
The 83-year-old legal eagle is best known for representing women in high-profile sexual abuse cases but the behind-the-scenes demands can weigh heavy on victims, who are already in a vulnerable position.
“You think she’s a feminist who cares about victims,” one source who has done business with Allred but asked to remain anonymous told The Post, adding: “But there’s an element of exploiting them.”
Clauses in her contracts state if Allred terminates the contract or a client wants to walk away, the firm can charge up to $1,200 per hour of work — a number which can easily hit north of six figures.?
“The client is handcuffed to Allred…. let’s say Allred has spent 400 hours on someone’s case… who can afford that?” a lawyer who reviewed one of Allred’s contracts provided to The Post said.
“If someone?is not happy with the services, you can’t cough up that much money.”
One retainer contract from the Allred, Maroko & Goldberg law firm seen by The Post lays out a 40% cut of any settlement for the legal company, a high number for a settlement cut — which is typically in the range of 20% to 30% if the case doesn’t go to litigation. The fine print also reveals those costs will swell when additional fees are added in.
The retainer lists potential costs — business-class airfare, hotel stays, mediation fees, paralegal work, and more — but their tota is often undisclosed until after a settlement.
“You will also be responsible for any and all out-of-pocket costs paid by this office on your behalf during the course of negotiations,” it reads.
In a statement to The Post, Gloria Allred said, “The purpose of our retainer agreement is to clearly set forth in writing the terms and conditions under which our law firm agrees to represent the client.”
Regarding the clause about walking away, Allred said, “That provision is designed for cases where the law firm has expended a great deal of time and effort and the client decides to drop the claim or terminate our services without cause,” or if the company has to drop the client for “ethical reasons or other just cause,” which she assured is “extremely rare.”
One source estimated that Allred’s cut, plus out-of-pocket expenses like luxury travel, could consume up to 75% of a settlement.
Unlike most sexual harassment or assault cases, where attorneys work on contingency — collecting fees only after a settlement — Allred’s terms allow her firm to profit handsomely even without a win.
Sources called this arrangement “unheard of.”
The contract specifies, “Costs will be recorded on a monthly basis as they are incurred, and interest will be charged on the unpaid balance over thirty days. Any amounts outstanding at the time of settlement will be deducted from your share of the settlement proceeds prior to disbursement of the settlement funds.”
Allred countered, “The client reimburses the costs the law firm has advanced on their behalf only if we win a settlement. Otherwise, if we are not successful in achieving a settlement the client is not responsible.”
The Wall Street Journal reported this week Allred allegedly strong-armed clients into accepting confidential deals and threatened to drop them if they resisted.?
Allred reportedly pushed dozens of women to sign NDAs that forbid them from discussing their trauma with spouses or therapists, the WSJ alleged.
She told one client to destroy evidence by deleting messages sent to her alleged abuser that contradicted the narrative Allred was trying to establish, according to the report. Also, because of language in the contract which prevents clients from suing her, many victims have been unable to publicly discuss issues they have had with her, the WSJ claimed.
One client felt manipulated into media appearances that burnished Allred’s image, but others said they felt stripped of financial independence as a result of signing on with Allred, according to the WSJ.
Allred?and her partners declined to comment on specific complaints to the newspaper, but published a response on their website.
In her statement, she claimed, “Almost all of the more than 10,000 plus clients that we have represented expressed their gratitude to us for helping them to win justice.”
However, the source said Allred very publicly displays her feminist bona fides — at one time citing her awards in her email signature — and constantly makes references to her book “Fight Back and Win: My Thirty-Year Fight Against Injustice And How You Can Win Your Own Battles” which is proudly displayed in her office but former clients claim they felt little of that in the way they were handled.
“I was very overwhelmed and she seemed like she was the best lawyer,” the source adds. “Unfortunately,” they claimed — it was about “making money.”?
Another source added the contract stating Allred has no interest in representing someone in the event of bankruptcy says everything.
One attorney told The Post,” The message being sent is I am Gloria Allred… I bring value and you need to pay more to have me.
“The attorney has an inordinate amount of power.”
