Jury told to deliberate some more in diet drug case

By John McIntyre

Last update: July 2, 2008 - 10:45 AM

COVINGTON, Ky. -- A federal judge told deadlocked jurors to go back and discuss the case again as the possibility of a mistrial loomed in the case of two lawyers charged with defrauding their clients out of $65 million in a diet-drug settlement.

U.S. District Judge William Bertelsman sent the jurors back to deliberate an hour after the panel reported it remained deadlocked. Bertelsman instructed them to think about their decisions and reconsider the case one more time.

Suspended lawyers William Gallion and Shirley Cunningham Jr. each face a charge of conspiracy to commit wire fraud. They were charged with taking more money from their clients than allowed in a $200 million settlement involving the diet-drug fen-phen.

A third lawyer, Melbourne Mills, was acquitted by the same jury Tuesday.

The case has been closely watched in the horse racing industry because Gallion and Cunningham are part-owners of 2007's Horse of the Year, Curlin.

After less than an hour of deliberations Wednesday, the seventh day the jury has had the case, jurors sent out a note about 9:40 a.m. EDT.

"We the jury continue to remain deadlocked," the note said. "We also agree we cannot come to an unanimous decision."

Defense lawyers asked the judge to hold off declaring a mistrial.

"We definitely do not request a mistrial," said Gallion's attorney, O. Hale Almand.

But Cunningham's lawyer, Steve Dobson, said another deadlock would bring the trial to a close. "If they're hung again, we're stuck with them being hung," Dobson said.

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