Exclusive: Arthur Laffer Is No Laughing Matter for Some

Arthur Laffer became one of the nation's most famous economists with his theory that wealth trickles down, but as a board member, several companies claim he demanded a steady stream of stock into his pockets, while offering far less in return than he had promised.

Laffer agreed to serve on the boards of several embryonic companies in exchange for equity stakes. He then sued the firms for payment after they claimed he failed to perform agreed-upon duties as a board member, according to court documents and interviews with a number of Laffer's former colleagues and their attorneys.

The economist has had considerable leverage in the disputes, because companies that eagerly announced his appointment to their boards are loath to lose the legitimacy his name brings and are ill-financed to fight his lawsuits, the court documents contend. ...