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Law firm says it's downsizing because of 'unfair allegations' in barratry suit

A Texas insurance-coverage law firm is blaming a barratry class action for a decision to “significantly downsize.”

The law firm Speights & Worrich says it’s downsizing because of the “false and unfair allegations” in the suit, Forbes reports in an article by a reporter who writes for the Southeast Texas Record and Legal Newsline. But unnamed sources say the firm is actually dissolving and sending its cases to another firm, the article reports.

The barratry allegations first surfaced in May in an intervention petition filed in an ongoing lawsuit. The petition alleged the law firm collaborates with contractors who sign up homeowners for storm-related home repairs that will be covered by insurance. Paperwork signed by homeowners obligates them to pay a public adjuster and insurance-coverage law firm, the petition claimed.

The allegations are now part of a lawsuit claiming Speights & Worrich is using the contractors to get business in violation of the ban on barratry.

Speights & Worrich founder Jason Speights told the Southeast Texas Record reporter that his firm has represented countless people who were able to get a fair insurance payment with the law firm’s help.

“Unfortunately, the false and unfair allegations which have been asserted against our firm in a pending attempted class action lawsuit have wrongfully damaged our professional reputation and hurt our business dramatically,” Speights said in the statement.

“We eagerly anticipate, and fully expect, to vindicate our good name and professional integrity by virtue of a favorable arbitration award. So that we can focus our efforts and resources in that regard, we have made the difficult decision to significantly downsize our firm.”