And the lion shall lay down with the lamb... According to attorneys at Bernstein Litowitz, they have had several productive conversations with former Refco CEO, Philip Bennett and expect him to be more than helpful in the firm's pending representation of aggrieved Refco shareholders. Bennett, for his part, might be looking for some good karma considering that he is facing a little over 300 years in prison if convicted on all the charges he is currently facing. Bennett's sentencing is set for June 19th.

-- MDT

Labels: Bernstein Litowitz and Berger, class action, Phillip Bennett, Refco

Two Commerce Bancorp shareholders are holding out, having filed suit to stymie a planned merger between Commerce and Toronto Dominion. What is interesting here is that powerhouse shareholder firm, Bernstein Litowitz has already negotiated a settlement on behalf of a consolidated group of shareholders meant to sweeten the deal. According to attorneys of the two holde-outs, not sweet enough. They are asking that the existing settlement be thrown out in favor of a new agreement. Details via Reuters.

-- MDT

Labels: Bernstein Litowitz and Berger, Commerce Bancorp, shareholders, Toronto Dominion

Bloomberg anoints Sean Coffey of Bernstein Litowitz as the new class action king. BusinessWeek made a similar proclamation two years ago. Suffice to say these guys (the folks who took down Worldcom, so respect) are probably seeing a few new opportunities come their way given the spectacular Milberg/Lerach indict-o-rama flameout.

-- MDT

Labels: Bernstein Litowitz and Berger, class action, Sean Coffey, securities

And yea the shareholders were very pleased, as Sean Coffey had once again brought them to the promised land.

-- MDT

Labels: Bernstein Litowitz and Berger, class action, Nortel, Sean Coffey

Make that alleged role. But the plaintiffs, they are a'comin for Mayer, Brown, Rowe & Maw. While the Chicago firm hasn't been named as a defendent just yet, it has been acknowledged as a negotiator of some of the aledgedly fraudulent transactions that preceded Refco's implosion. While the lawyers representing, notably Sean Coffey of plaintiff powerhouse firm, Bernstein, Litowitz Berger, haven't commented yet on Mayer Brown's culpability the law firm's records are being poured over by the SEC and through suit or settlement, odds are that Mayer Brown will be paying for their involvement with Refco in more ways that one.

More here.

-- MDT

Labels: Bernstein Litowitz and Berger, Mayer Brown Rowe and Maw, Refco, Sean Coffey

The Daily Caveat has been following this story for as long as this blog has been around. Government investigators have been probing noted securities plaintiff firm Milber Weiss for more than five years now looking for improprieties in the way the firm handles the management of the large class action cases that often fall under its care. To a lesser extent, also in the cross-hairs was Bill Lerach, a former Milberg partner who, after a falling out with Milberg top-dog Melvyn Weiss, opted to leave the firm has open up his own shop.

Things really started to heat up in the seemingly aimless investigation last summer with the indictment of two Palm Springs, California attorneys who alledgedly participated in a scheme of kickback payments from Milberg to individuals serving as lead plaintiffs for the firm. Seymour Lazar, a movie industry lawyer who once dated Maya Angelou was indicted on charges of receiving kickbacks from Milberg Weiss and Paul Selzer, a real estate lawyer was accused of helping to launder the payments. In the indictment against Lazar and Selzer, as much as $44 million alledgely passed through their hands in illegal kickbacks from Milberg Weiss.

The roots of the Lazar indictment lie in part with art dealer and convicted insurance fraudster, Steven Cooperman. Cooperman was in seven kinds of legal trouble and facing a ten-year sentence when he offered federal prosecutor inside knowledge on Milberg's practices based on his own experience serving some 60 times as a lead plaintiff for the firm. A great deal of information was also gleaned from the briefs filed in Cooperman's nasty divorce. According to testimony by Cooperman in the divorce case, between 1988 and 1997 he received about $5 million from his arrangement with Milberg Weiss.

While Lazar has all along fought the charges against him and refused to roll on Milberg, another former lead plaintiff, Howard J. Vogel, signed a plea deal with prosecutors and, in exchange for avoiding prosecution himself, has offered up his knowledge of the firm. Vogel and members of his family have served as plaintiffs as many as 40 Milberg receiving approximately $2.5 million in illegal kickbacks.

Subsequently we also learned that former Milberg partner, Alan Schulman, who is now a partner at rival firm, Bernstein Litowitz cooperated with the California Grand Jury investigating Milber Weiss. There was apparently no love lost between Schulman and his former firm, and he was all too happy to dish on what he saw as imappropriate tactics used by his former employer.

Midweek-last week saw two Milberg executive partners take a not expected leave of absence. David Bershad and Steven Schulman, both of whom had been courteously informed a few months back that they should keep their dancecards open for the Feds, departed Milberg for the time being to face pending indictments against each of them in relation to the kickback investigation.

The question is, will they have a firm to return to?

Before The Daily Caveat could even get a weekend to catch its breath the California Grand Jury handed down a 20-count indictment against Milberg Weiss based on allegations that, from 1981 to 2005 , in the course of their management of plaintiff class action cases, the firm paid kickbacks to lead plaintiffs and other facillitators. Clearly for Milberg and the prosecutors who have been giving chase for the last several years, the past is prologue and the real story has only just begun.

-- MDT

Labels: Bernstein Litowitz and Berger, Howard Vogel, HP, Melvyn Weiss, Milberg, Milberg Weiss

The AHI case appears to be a bit of a perfect storm for investigators, with several well known players in Milberg's orbit all having a role in the lawsuit. Several key participants in the case have been granted immunity including frequent Milberg lead plaintiff, Melvyn Kinder, whose attorney has acknowledged that Kinder is assisting investigators.

Other familiar names involved in the case that will ring a bell for one following the Milberg kickback probe include:

Government informant Stephen G. Cooperman was involved in bringing the case to Milberg's attention. Cooperman offered up info on Milberg Weiss in the hopes of reducing the decade-long sentence he was facing on insurance fraud charges.

Former Milberg partner Alan Schulman (now with Bernstein Litowitz) who since leaving Milberg has been openly hostile to the firm's conduct was the team leader on the AHI case. Schulman is known to be cooperating with investigators.

Also participating in the AHI case was John B. Torkelsen, a frequent Milberg expert witness who has had his own troubles with the law. Torkelson recently received a plea deal that was though to be related to his assisting federal prosecutors in their Milberg probe.

Check out the full LA Times article for a closer look the various players' connections to the AHI suit and how it all effects the ongoing government investigation into Milberg Weiss's alledged improprieties.

-- MDT

Labels: Bernstein Litowitz and Berger, Melvyn Weiss, Milberg, Milberg Weiss

Apparently former Milberg partner Alan Schulman (now with rival plaintiff firm Bernstein Litowitz) provided secret testimony to a grand jury regarding the government's ongoing investigation into alleged kickbacks and other supposed illegalities perpetrated by the superstar plaintiff firm and possibly by former Milberger, Bill Lerach:

Via LA Business Journal Online:

Prosecutors Step Up Probe of Milberg Weiss Law Firm

LA Business Journal
Auguat 8, 2005

A federal grand jury in Los Angeles heard testimony three weeks ago from Alan Schulman, a former partner in the high profile law firm of Milberg Weiss, which is being investigated by federal prosecutors for possibly making secret, illegal payments to plaintiffs in its securities class-action lawsuits, the Wall Street Journal reported. The cooperation of Schulman was being seen as a major coup for prosecutors, who have been investigating the New York-based law firm for four years. Prosecutors have informed William Lerach, the high profile former partner of the firm, and two other former partners, David Bershad and Melvyn Weiss, that they could face indictment for conspiracy. It is illegal to make payments to plaintiffs in such cases to avoid a conflict between lead plaintiffs and class members. The investigation was first made public in June when a Seymour Lazar, a retired Palm Springs attorney, who was a plaintiff in at least 50 Milberg Weiss securities cases, was charged by the grand jury with fraud, conspiracy and money laundering for allegedly taking $2.4 million under the table.

The original story appears here.

This would not be the first or only time that Schulman has spoken out against the actions of his former firm and against the conduct of Bill Lerach in particular. He took them to task in a recent Fortune magazine article that was generally critical of the conduct of Lerach and his former firm, Milberg Weiss (summarized via the SanDiegoReader):

The Fortune article said Alan Schulman, a then-Milberg Weiss partner who now practices in San Diego with another firm, believed Lerach was "reckless," "vindictive," and "dangerous" and would ultimately ruin the firm. But Milberg's head, New York's Melvyn Weiss, wouldn't rock the boat at that time, and Schulman departed...

Looks like Schulman finally found an eager listener in the federal government and an open forum for his complaints via grand jury. Meanwhile, The Wall Street Journal has reported that two former Milberg partners have been granted immunity. Schulman would appear to be one. The other is as yet unknown but no doubt that anonymity won't last.

-- MDT

Labels: Bernstein Litowitz and Berger, money laundering

Federal investigation or no, the hits just keep coming for Bill Lerach & Co... CIBC's multi-billion dollar settlement officially makes the Enron debacle, in which Lerach was the lead plaintiff attorney, the undisputed top-dog when it comes to securities class action settlements. Enron's $7 billion total now surpasses the $6 billion garnered in Worldcom-related litigation, which was led by rival plaintiff counsel Sean Coffey of Bernstein Litowitz (link goes to a great article about Coffey - check it out).

Via CFO.com:

Enron Settlements Hit Record $7 Billion

With the Canadian Imperial Bank of Commerce's $2.4 billion settlement, the energy giant pulls ahead of WorldCom. Also, Credit Suisse bulks up Enron litigation reserves.

by Stephen Taub, CFO.com
August 03, 2005

Canadian Imperial Bank of Commerce's agreement late yesterday to pay $2.4 billion to settle a securities fraud class-action suit stemming from Enron Corp.’s bankruptcy brought the total amount recovered in litigation involving the company to $7.12 billion, according to William Lerach, of Lerach Coughlin Stoia Geller Rudman & Robbins LLP, counsel for the University of California’s Board of Regents, the lead plaintiff.

The amount tops the $6.1 billion awarded to WorldCom investors, making the Enron settlements the largest sum ever recovered in a group of securities class-action lawsuits.

The CIBC pact is the largest settlement in the Enron litigation. Officials at the University of California alleged that CIBC participated in an elaborate scheme to defraud investors by helping Enron to inflate earnings, according to press reports.

CIBC management noted that the settlement does not include any admission of wrongdoing, and that the company agreed to the settlement solely to eliminate the uncertainties, burden, and expense of further protracted litigation. “By settling this case and maintaining what we believe are adequate reserves for our remaining Enron related legal issues, we can better focus our energies on our other priorities,” said Gerry McCaughey, president and chief executibe officer.

Through its Enron-related suits, The University of California has also recovered $2.2 billion from JPMorganChase, $2 billion from Citigroup, $222.5 million from Lehman Brothers, $69 million from Bank of America, $168 million from Enron’s outside directors, and $32 million from Andersen Worldwide.

The University will also secure a distribution of about $32 million for investors through the bankruptcy proceeding for the LJM2 partnership that was used as part of the Enron scheme to hide losses and inflate earnings....

Full article appears here.

-- MDT

Labels: Bernstein Litowitz and Berger, Enron, Sean Coffey

Business Week has run a story profiling prominent securities plaintiff attorneys, Max Berger and Sean Coffey of Bernstein, Litowitz Berger & Grossman:

The Kings Of Class Actions

May 16, 2005

Max Berger and Sean Coffey are riding high after making WorldCom's bankers pay up. Here's what life is like for Max W. Berger these days: The maitre d' at Manhattan restaurant Cité prances around the 58-year-old founding partner of plaintiffs' law firm Bernstein Litowitz Berger & Grossmann LLP (BLBG) as Berger is delivered to his favorite corner table. He is offered a sampling of fine wine, and his filet mignon is on the house after he complains that the first one is too fatty. Berger soaks up the attention. But the real treat arrives with dessert. Jonathan J. Lerner, a partner at venerable law firm Skadden, Arps, Slate, Meagher & Flom LLP, who opposed Berger in a massive shareholder lawsuit five years ago, saunters up and says to his dinner companion: "This guy took $3 billion from me. He's the best lawyer in New York."

The article kinda goes on like that, listing some of Berger and Coffey's greatest hits. But it provides interesting view into one of the preeminent firms and some of the most prominent personalities in securities litigation.

Read the rest here.

Many thanks to the 10b-5 Daily for the link.

-- MDT

Labels: Bernstein Litowitz and Berger, Sean Coffey