Law firms could reap a massive windfall from climate lawsuits that have been filed in numerous Democrat-leaning jurisdictions across the U.S., a Daily Caller News Foundation review of legal contracts found.

Several state and municipal prosecutors across the country have signed agreements with private law firms to help with lawsuits against major energy corporations. These contracts, known as contingency-fee agreements, reward law firms with a percentage of the payout if the parties reach a settlement—but do not require substantial up-front payments from local governments.

These agreements create incentives for activist law firms and Democratic prosecutors to collaborate on litigation against American energy companies in pursuit of hefty settlements. Prospective settlements could vary in size, ranging from tens of millions of dollars to billions, depending on how the cases play out, according to E&E News.

While the specifics of the cases vary, the lawsuits generally argue that major energy companies are liable for misleading the public about environmental damage their products allegedly cause.

For example, Sher Edling’s agreement with Minnesota, led by Democratic Minnesota Attorney General Keith Ellison, stipulates that the firm will make 16.67% of the first $150 million recovered and 7.5% of any additional recovery in the state’s climate lawsuit against energy interests, such as ExxonMobil and the American Petroleum Institute.

Notably, Sher Edling employees have given tens of thousands of dollars to Democratic candidates dating back to 2016, according to Federal Election Commission data.

Sher Edling, along with another law firm, Tycko and Zavareei, also contracted to assist a climate lawsuit in Washington, D.C. That particular agreement caps the firms’ payouts in the event of a settlement at a cumulative $70 million.

Critics say these lawsuits are based on questionable legal theories and are an attempt by special interests to enact anti-fossil........

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