Subsidy of $800 Million from the 2017 Las Vegas Shooting Settlement Approved By Judge
An $800 million settlement was approved in a court between MGM Resorts International, insurers, more than 4,400 families, and victims of the Las Vegas Strip shooting, which was the deadliest in modern U.S. history.
The 2017 Las Vegas Mass Shooting
On October 1, 2017, the man who opened fire on thousands of country music fans attending the open-air Route 91 Harvest Festival stayed on the 32nd floor of the Mandalay Bay Hotel in Las Vegas.
The carnage that followed the deadliest mass shooting in American history resembled that of a war zone.
In total, 58 concertgoers died, over 800 were hospitalized, and thousands were traumatized in various ways.
Approximately 4,500 plaintiffs hired lawyers to sue Mandalay Bay’s parent company, MGM Resorts International, claiming that the hotel’s lax security allowed Stephen Paddock to carry 23 guns up to his suite.
MGM decided to pay $800 million to the plaintiffs on October 3 after some contentious legal maneuvering.
A 225-paged civil lawsuit was filed on September 9, 2020, seeking restitution and legal costs from MGM Resorts.
This includes a line-by-line list of plaintiffs defined only by their initials.
In the 2017 shooting, it accused the casino business of negligence, wrongful death, and liability.
Plaintiffs come from nearly every state in the United States, including at least eight provinces in Canada, Iran, Ireland, and the United Kingdom.
Victims and families accused MGM Resorts in numerous lawsuits of failing to shield concertgoers or prevent the gunman from amassing an arsenal of arms and ammunition for several days before he opened fire.
Attorney Robert Eglet, the plaintiffs’ lawyer who spent a year negotiating the deal with clients, law firms, and lawyers in at least ten states, said two retired judges would decide the disbursement amounts. He expects payments to begin by the end of the year.
The Decision of the Court
Considering the damages suffered by the plaintiffs, the almost unanimous participation in the settlement by potential claimants, and the legal complexities in the case, the sum of the settlement worth eight hundred million dollars ($800,000,000.00), which was decided after a lengthy mediation and extensive arms’-length negotiations, weighs in favor of a finding that the settlement was reached in good faith.
The allocation of the settlement proceeds among the plaintiffs is facilitated by an intricate, court-approved claims protocol.
The protocol specifies separate amounts for various types of injuries and considers a variety of factors, including a claimant’s past medical treatment bills, future medical treatment projections, and lost revenue. This is to fairly compensate each individual’s injuries.
The financial status of MGM was not taken into account when deciding on the settlement. MGM agreed to commit $49 million of its funds to the settlement, in addition to its total policy cap, as a result of the near-unanimous interest in the settlement from future claimants.
In this settlement, there was no proof of bribery or conspiracy. The parties had been negotiating for months with the help of mediators, the Honorable Jennifer Togliatti (Ret.) and the Honorable Louis Meisinger (Ret.).
Plaintiffs’ lawyers requested guidance and recommendations from ethics experts to ensure that the settlement agreement and related documentation followed all ethical standards and guidelines. The experts agreed that the documents and settlement did.
Furthermore, the parties chose the mediators to oversee the negotiations acceptably—a tactical, non-substantive decision that did not require client consent. Plaintiffs’ lawyers, according to ethics experts, worked with their clients sufficiently in the settlement.
Editor’s Note on 2017 Las Vegas Shooting Settlement For $800 Million:
This article is published to inform you of the settlement between MGM and the victims of the 2017 Las Vegas Shooting.
Case Name & No.: MGM Resorts International, et al. v. David Aase et al., Case No. 2:18-cv-06113, in the U.S. District Court for the Central District of California
Products/Services: MGM Resorts International
Allegations: MGM Resorts International failed to protect its guests
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