PORTLAND, Ore. – Multiple Oregon businesses have filed a class action lawsuit alleging that two Tennessee law firms orchestrated an $80 million racketeering scheme by targeting businesses for alleged violations of the Americans with Disabilities Act (ADA) and demanding monetary settlements.
The lawsuit, filed Thursday in U.S. District Court in Portland, includes over 100 businesses, with four Oregon entities named as lead plaintiffs: Baeca Partnership, AB Hollywood, My LLC, and Penny Kim Trust.
According to the complaint, the law firms of Wampler, Carroll, Wilson & Sanderson P.L.L.C. and The Wade Law Firm incentivized individuals with disabilities to act as "testers" to identify potential ADA non-compliance at businesses for the firms' own unjust enrichment.
The lawsuit alleges that the firms built a database of tens of thousands of potential victims across more than 15 states with alleged ADA violations.
The firms then allegedly paid testers $200 to visit businesses, instructing them to purchase an item and take a photo as proof of their visit, rather than specifically identifying ADA violations.
Court documents state that Wampler instructed purported testers that they only needed to visit the business, buy something, and upload a receipt photo, rather than identify specific ADA violations. Wampler allegedly explicitly told testers, "No need to inspect anything as it has already been inspected," and falsely claimed that third-party audits of the businesses existed without the testers' knowledge.
The lawsuit further alleges that the law firms connected these purported testers with "hand-picked" local attorneys to facilitate Wampler's ADA extortion scheme. These attorneys then allegedly sent demand letters to the businesses on behalf of the testers, claiming their clients had encountered ADA-related barriers on the premises. These alleged violations focused on accessibility issues such as the width of parking spaces, the angle of parking ramps, and the visibility of signage.
According to court documents, the demand letters stated that all ADA violations could be resolved by the property owner paying the attorneys' fees.
The lawsuit claims that the firms sent out over 4,000 demand letters and filed more than 1,000 lawsuits in federal district courts.
J. Luke Sanderson of Wampler, Carroll, Wilson & Sanderson told KOIN 6 News on Friday that "this lawsuit is completely without merit." He added, "We are grateful for the opportunity we have had to represent individuals who have been denied access to public accommodations because of their disability, and we will vigorously defend against this lawsuit and expect to prevail."
The Wade Law Firm could not be reached for comment. This story will be updated if a response is received.
Attorneys representing the class action plaintiffs say they aim to restore faith in the ADA.
"The Americans with Disabilities Act was enacted to ensure equal access for everyone, and honest enforcement helps achieve that. It is not meant to be a tool for unscrupulous lawyers to line their pockets through fraudulent claims," said Joseph May, lead counsel for the plaintiffs at Sapient Law Group. "This lawsuit aims to restore faith in the ADA and to stand up for small business owners who have been disproportionately harmed by this racketeering scheme."
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