Friday, August 19, 2005

The Insurance Industry--Multiplying Billable Hours for Defense Lawyers!

Yup, the lawsuit that alleges that the Texas Association of Business violated Texas campaign finance law has been expanded to include Cigna, Ace American, Connecticut General, and other insurance companies. For an industry known for lawyer-bashing, its activites sure are generating a lot more work for the defense bar. Good for them.

From the Austin-American Statesman:

"A lawsuit against the Texas Association of Business has been expanded to include several corporate donors, most of them insurance companies, that financed the association's 2002 direct-mail campaign that's part of a grand jury investigation.

Austin lawyer Buck Wood, representing three former Democratic candidates who were opposed by the association, now has named eight corporations as defendants: AT&T Corp., Great-West Life & Annuity Insurance Co., Ace American Insurance Co., Aetna Inc., Connecticut General Life Insurance Co., United Healthcare of Texas, Cigna Healthcare of Texas Inc. and America's Health Insurance Plans.

More corporations might be added as defendants, Wood said.

The Texas Association of Business, the state's largest business organization, spent about $1.7 million of corporate money on ads mailed to voters in two dozen crucial state legislative campaigns. The effort was paid for by donations, from $100 to $300,000, from 30 or so firms.

The ads touted Republicans and criticized Democrats. Travis County District Attorney Ronnie Earle is investigating whether the ads violated the state ban against corporate money being spent on campaign activities.

Lawyers for the association have argued that the ads did not advocate the election or defeat of anyone because they avoided using words such as "elect," "support," "oppose" or "defeat." They said the ads educated voters about the issues."

Um, yeah, they "educated" voters how to vote for Republicans and against Democrats. Um, I think that kind of "education" is called propaganda.

And that's not how it is supposed to work in a democracy , is it?

Whatever.

3 Comments:

Anonymous Anonymous said...

In this particular case you are certainly right... It is certainly wrong (and illegal) for these companies to pay for ads/flyers that are basically propaganda for one party or the other. However, having an informed voting population is extremely important!

Currently, it seems that noone is interested in paying for unbiased voter education. Or worse, noone _can_ pay for voter education because it may be seen as illegal compaign contributions. I feel that if we actually had a well informed public, we would not have our current administration.

Do you know of any nonpartisan organizations that actually provide unbiased information to the voters? Are they being sued? (If not, are they hiring?)

1:26 AM  
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