The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
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3/08/2009
Call to Unleash Lerach on the Banking System?
10/01/2008
Lerach Moved Up to Medium Security Prison
A Good Day for the Plaintiff Bar
Checking in With Inmate #46683-112 (Bill Lerach)
The Last (No Really, The LAST) Shoe Drops
Ideoblog on the Lerach Sentencing
Lerach Sentencing A Sign of Class Action Clean Up
Lerach Writes Own Ticket on Sentencing (UPDATE - He Gets 2 Years)
Bill Lerach's Former Firm Diversifies
Prosecutors Seek Two year Term for Bill Lerach
Seymor Lazar Sentenced
1/06/2008
Bill Lerach Commentary Runs in Pittsburgh Post Gazette 11/13/2007
Lerach Writes Op-Ed on Executive Compensation
Lerach: Guilty 10/22/2007
Milberg Strategic Errors Risk the Survivial of the Firm
Ripples of Lerach Guilty Plea Reach Coca Cola Class Action
Supreme Court Takes Up Stoneridge Tomorrow
Lerach Rivals Celebrate Fall
FT Looks at the "Fallen Angels" of the U.S. Plaintiffs Bar
Spring Brings SEC Examination of Securities Class Action
Lerach in Wired Circa 1996 and Update on Sentencing
Lerach Guilty Plea: To Serve 12 to 24 Months
Lerach Plea Deal in the Works?
And the Lerach "Obits" Keep Coming...
Bill Lerach Retirement Date Announced
Back in the Saddle, A Little Catching Up to Do
WSJ's Lattman Muses Over the Future of a Lerach-less Lerach Coughlin
Motion(s) on the Milberg Indictment
LA TImes Recaps the Milberg Investigation
Milberg's David Bershad Pleads Guilty on Kickback Charges
Lerach and Weiss Turned Down Plea Agreement in Kickback Probe
Stonridge Reckoning For Securities Industry
Lerach Partner Confirms Retirement By Year's End
Your Daily Milberg...
Lerach Retirement - The Speculation Continues
Bill Lerach Calls it Quits
Enron Shareholders Pursue Banks for Restitution
European Firm gets the Lead Plaintiff Nod in Dell Fraud Class Action
Lerach Rebuffed on Lead Counsel Slot for Comverse Class Action
Milberg Investigation Inches Closer to Lerach With Guilty Plea From Serial Plaintiff, Steven Cooperman
More Details on Lerach Lawfirm Removal from Halliburton Litigation
Milberg Trial Has a Date, New Charges Teased
Call to Unleash Lerach on the Banking System?
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Lerach Moved Up to Medium Security Prison
You guys probably caught this before I did - famed litigator and current inmate, Bill Lerach was recently moved to a more secure facility after committing the gross faux pas of offering a guard his season tickets to the San Diego Chargers.
-- MDT
9/10/2008
-- MDT
Labels: Bill Lerach
A Good Day for the Plaintiff Bar
And the former shareholders of Enron, who will receive $1.7 billion, according to a recently approved settlement distribution plan. The law firm Coughlin Stoia Geller Rudman & Robbins (you may note the missing Lerach, there) will collect $688 million for their role in running the massive class action. If you're keeping score, both of those numbers have set new records, for settlement size and attorney fees.
-- MDT
8/20/2008
-- MDT
Labels: Bill Lerach, Coughlin Stoia, Enron, settlement
Checking in With Inmate #46683-112 (Bill Lerach)
I could do with out the triumphalism in the piece (and the transparent bitterness over not having a planned interview with Lerach take place), but give this DC Examiner article a gander anyway for a day-in-the life story for what Lerach is up to these days, while completing his sentence at a minimum security prison in Lompoc, California.
- MDT
7/14/2008
- MDT
Labels: Bill Lerach
The Last (No Really, The LAST) Shoe Drops
Paul T. Selzer -- the final defendant in the government's bribery case against law firm, Milberg Weiss -- plans to plead guilty in relation to the Milberg Weiss kickback investigation. Selzer was originally indicted in the probe back in June of 2005.
Details of Selzer's plea agreement are expected this morning. Selzer, a California attorney, had been one of the key figures at the heart of the government's investigation into Milberg Weiss. securities class action lawsuits against a variety of companies.
It was alleged that Selzer helped Milberg funnel payments to his client, Seymour Lazar, another attorney and reoccurring lead plaintiff for Milberg. It is expected that Selzer get probation and avoid jail time but be required to pay a $250,000 fine.
If you've hit the snooze button a few too many times in the course of the Milberg case and want a refresher, you might want to check out our recap of the Milberg investigation, penned on the eve of the firms indictment back in May of 2006.
--MDT
2/12/2008
Details of Selzer's plea agreement are expected this morning. Selzer, a California attorney, had been one of the key figures at the heart of the government's investigation into Milberg Weiss. securities class action lawsuits against a variety of companies.
It was alleged that Selzer helped Milberg funnel payments to his client, Seymour Lazar, another attorney and reoccurring lead plaintiff for Milberg. It is expected that Selzer get probation and avoid jail time but be required to pay a $250,000 fine.
If you've hit the snooze button a few too many times in the course of the Milberg case and want a refresher, you might want to check out our recap of the Milberg investigation, penned on the eve of the firms indictment back in May of 2006.
--MDT
Labels: Bill Lerach, Melvyn Weiss, Milberg Weiss, Paul Selzer, Seymour Lazar, Steven Cooperman
Ideoblog on the Lerach Sentencing
Mr. Ribstein is the thinking person's blogger on the subject of law and society. I encourage you to check out his comments on the Lerach sentencing.
--MDT
2/11/2008
--MDT
Labels: Bill Lerach, Ideoblog, Lerach, sentencing
Lerach Sentencing A Sign of Class Action Clean Up
Interesting comment from Stephen Bundy, professor of law art UC Berkeley: "What you're watching is a bit of a transition from a world in which class-action practice did have some disreputable aspects to a different model that's much more responsible, publicly oriented and closely regulated..."
More on the changing face of class action litigation, via the LA Times.
-- MDT
2/10/2008
More on the changing face of class action litigation, via the LA Times.
-- MDT
Labels: Bill Lerach, class action, securities, sentencing
Lerach Writes Own Ticket on Sentencing (UPDATE - He Gets 2 Years)
Bill Lerach has requested a one year prison term, half of that to be spent at home. Prosecutors have been aiming for something more like two years. Specifically, "The federal probation office recommended a sentence of 15 to 21 months, two to three years of supervised release and a fine of $4,000 to $40,000."
The penalty would stem from Lerach's guilty plea on one count of conspriacy in relation to the governments investigation into plaintiff kickbacks paid by Lerach's former law firm, Milberg Weiss. Milberg co-founder Melvyn Weiss along with attorney Paul Selzer have both maintained their innocence and face trial later in the year.
SENTENCED: The final numbers are 2 years in prison, 250,000 fine, 1,000 hours of community service. Lerach is expected to surrender himself for incarceration in April.
-- MDT
2/01/2008
The penalty would stem from Lerach's guilty plea on one count of conspriacy in relation to the governments investigation into plaintiff kickbacks paid by Lerach's former law firm, Milberg Weiss. Milberg co-founder Melvyn Weiss along with attorney Paul Selzer have both maintained their innocence and face trial later in the year.
SENTENCED: The final numbers are 2 years in prison, 250,000 fine, 1,000 hours of community service. Lerach is expected to surrender himself for incarceration in April.
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Melvyn Weiss, Milberg, Milberg Weiss, Paul Selzer
Bill Lerach's Former Firm Diversifies
Coughlin Stoia Geller Rudman & Robbins, the firm formerly headed by the now awaiting sentencing, Bill Lerach, is broadening its base. Well known for their shareholder class action cases, Coughlin Stoia has announced the creation of a new litigation group focusing on patents.
Details via The San Siego Tribune.
-- MDT
1/29/2008
Details via The San Siego Tribune.
-- MDT
Labels: Bill Lerach, class action, Coughlin Stoia, Lerach, patents, securities
Prosecutors Seek Two year Term for Bill Lerach
Sentencing recommendation: two years in the clink, $250,000 fine, two years probation. This in response to Lerach's prior guilty plea on one count of conspiracy to obstruct justice and make false statements. February 11th will tell the tale.
-- MDT
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Milberg, sentencing
Seymor Lazar Sentenced
Seymour Lazar, the 80 year old attorney - and serial securities plaintiff - who plead guilty in the Milberg kickback case has received his sentence - six months home detention and two years probation. He was also fined $600,000. Lazar is the first to be sentenced in the Milberg probe.
Lazar has also already repaid $1.5 million, which amounts to what he was allegedly paid by Milberg Weiss in exchange for acting as a re-occurring lead plaintiff in the firm's securities class actions. Milberg stands accused (and seven people have already plead guilty in connection with) distributing $11 million in kickbacks to individuals they called upon to routinely serve as lead plaintiff in their cases.
-- MDT
Lazar has also already repaid $1.5 million, which amounts to what he was allegedly paid by Milberg Weiss in exchange for acting as a re-occurring lead plaintiff in the firm's securities class actions. Milberg stands accused (and seven people have already plead guilty in connection with) distributing $11 million in kickbacks to individuals they called upon to routinely serve as lead plaintiff in their cases.
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Milberg, Milberg Weiss, Seymour Lazar
1 Comments.
The report regarding the sentencing of Seymour Lazar does not tell the entire story, and seriously mischaracterizes the circumstances and this fine man. I have known Mr. Lazar for over twenty years, and know him to be the kindest,one of the most honorable and generous persons I've ever met. Earlier in life, as an attorney, Mr. Lazar defended and gained acquittal for Lenny Bruce in an obsenity trial, and as a partner of the legendary Melvin Belli, he committed himself to many charitable and philanthropic endeavors. What the article does not reveal is that Mr. Lazar's involvement in class action lawsuits were for the benefit of all of us. As an example of some of the class action suits he masterminded was "Lazar vs. Hertz", wherein Hertz ceased from charging unfair amounts of money for fuel, when a customer returned the car with less than a full tank. Another recent example of the good things he accomplished was the class action lawsuit against Denny's, which eliminated the policy of making people of color wait hours to get a table. These are just a few examples of causes, Mr. Lazar felt were "doing good things". From my perspective, he engaged in these class action suits NOT for his personal gain as is alleged. I have been saddened to see what tactics our government has employed in their quest to bring an end to class action lawsuits, and even though Mr. Lazar's legal antics are on the periphery, he has suffered greatly for refusing to be a pawn in the overall strategy to bring down Milberg Weiss. Know this-the world is alot better because and for the things that Mr. Lazar has done in his life.
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Bill Lerach Commentary Runs in Pittsburgh Post Gazette 11/13/2007
Lerach Writes Op-Ed on Executive Compensation
This Lerach piece on executive compensation ran in the Sunday Washington Post. I missed it, but Prof. Picker over at the Legal Infrastructure of Business blog, which I've mentioned to you folks before, did not.
The notable idea put forth by Lerach - golden parachute as hush money.
Discuss!
-- MDT
10/30/2007
The notable idea put forth by Lerach - golden parachute as hush money.
Discuss!
-- MDT
Labels: Bill Lerach, executive compensation, Legal Infrastructure of Business
Lerach: Guilty 10/22/2007
Milberg Strategic Errors Risk the Survivial of the Firm
Great piece from The Recorder at Law.com. Lots of detail from the 7 or so year history of the Milberg investigation that may have slipped your mind, along with a detailing of some strategic missteps by Milberg that may end up costing the firm everything.
Of course, for a refresher on the investigation, all you need to do is click the tags below. There was a huge flurry of news coverage back in and around January '06 at right about the time Lazar was indicted. And The Daily Caveat was there.
-- MDT
10/21/2007
Of course, for a refresher on the investigation, all you need to do is click the tags below. There was a huge flurry of news coverage back in and around January '06 at right about the time Lazar was indicted. And The Daily Caveat was there.
-- MDT
Labels: Bill Lerach, Lerach, Melvyn Weiss, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman
Ripples of Lerach Guilty Plea Reach Coca Cola Class Action
New ammunition to prevent the certification of a class in the seven year old case? The defense is hoping so...
-- MDT
10/08/2007
-- MDT
Labels: Bill Lerach, class action, Coca-Cola, securities
Supreme Court Takes Up Stoneridge Tomorrow
A potential pyrrhic victory for Bill Lerach, whose Enron investor suit weighs heavily on the outcome, Stoneridge Investment Partners, LLC v. Scientific-Atlanta will be one of the most watched cases of the year. The case will determine the currency of scheme liability - whether third parties that knowingly participate in fraud can be held liable for their actions. Will the Supremes back the President's play or follow the lead of SEC Chairman Christopher Cox? We'll see. WSJ handicaps the case right here.
-- MDT
9/26/2007
-- MDT
Labels: Bill Lerach, Enron, scheme liability, Stoneridge
Lerach Rivals Celebrate Fall
FT Looks at the "Fallen Angels" of the U.S. Plaintiffs Bar
Interesting, some might say apologist, perspective from the Financial Times on the embroglio surrounding Messers Weiss and Lerach.
- MDT
9/24/2007
- MDT
Labels: Bill Lerach, FTI Consulting, kickbacks, Melvyn Weiss, Milberg Weiss
Spring Brings SEC Examination of Securities Class Action
The WSJ has details on the upcoming securities lit round table at the SEC. Chairman Christopher Cox has committed to a meeting on class action litigation reform for the first quarter '08, according to the Journal. Obviously this is a subject on the minds of many given the recent travails of class action kings, Bill Lerach and Melvyn Weiss.
It is worth noting that Cox was a co-author of 1995's Private Securities Litigation Reform Act, the most sweeping recent regulatory measure effecting securities litigation. He also, as a reminder, broke with the Bush Administration in asking that the Justice Department's Solicitor General support the right of former Enron shareholders to pursue compensation from third parties.
An interesting enigma is our Mr. Cox. He was seen as a very pro-business pick when appointed and many we're declaring that an end to big business reform was nigh, but Cox has carved out some very respectable middle ground over the course of his tenure. That probably means ain't nobody happy, but such is the nature of compromise.
Via BloggingStocks.
-- MDT
9/19/2007
It is worth noting that Cox was a co-author of 1995's Private Securities Litigation Reform Act, the most sweeping recent regulatory measure effecting securities litigation. He also, as a reminder, broke with the Bush Administration in asking that the Justice Department's Solicitor General support the right of former Enron shareholders to pursue compensation from third parties.
An interesting enigma is our Mr. Cox. He was seen as a very pro-business pick when appointed and many we're declaring that an end to big business reform was nigh, but Cox has carved out some very respectable middle ground over the course of his tenure. That probably means ain't nobody happy, but such is the nature of compromise.
Via BloggingStocks.
-- MDT
Labels: Bill Lerach, Christopher Cox, class action, Melvyn Weiss, SEC, securities
Lerach in Wired Circa 1996 and Update on Sentencing
Via an article entitled Bloodsucking Scumbag written by Karen Donovan of the National Law Journal. Lets call this:
Lerach: A Negative View
An interesting blast from the past and definitely a piece for those who view his current travails as comuppance.
And in case you missed it late yesterday, Lerach's statement regarding his guilty plea:
"I have always fought for my clients aggressively and vigorously in order to hold powerful corporations responsible when their actions harmed people. However, I regrettably crossed a line and pushed too far. For my actions, I apologize and accept full responsibility for my conduct."
I should also note that in addition to the $8 million (Ok, $7.8 million) mentioned yesterday as part of the settlement is a straight forfeiture. There is also a $250,000 fine. Most notably, Lerach's settlement in no way obligates him to cooperate with authorities in their investigation
-- MDT
9/18/2007
Lerach: A Negative View
An interesting blast from the past and definitely a piece for those who view his current travails as comuppance.
And in case you missed it late yesterday, Lerach's statement regarding his guilty plea:
"I have always fought for my clients aggressively and vigorously in order to hold powerful corporations responsible when their actions harmed people. However, I regrettably crossed a line and pushed too far. For my actions, I apologize and accept full responsibility for my conduct."
I should also note that in addition to the $8 million (Ok, $7.8 million) mentioned yesterday as part of the settlement is a straight forfeiture. There is also a $250,000 fine. Most notably, Lerach's settlement in no way obligates him to cooperate with authorities in their investigation
-- MDT
Labels: Bill Lerach, Lerach, Wilson Sonsini
Lerach Guilty Plea: To Serve 12 to 24 Months
It is being widely reported today that William Lerach is expected to accept a plea bargain in connection with the continuing kickback investigation into his former firm, Milberg Weiss. While Lerach had yet to be formally faced with any charges, it has been long assumed that he was one of the unnamed attorneys mentioned throughout the government's case against Milberg.
The word coming in from all over creation is that Lerach will accept a guilty plea on one count of conspiracy for which he would face a sentence of 12 to 24 months and an $8 million fine. It is widely known that Lerach and his lawyers have been negotiating with federal prosecutors for some time now and this purported agreement apparently reflects the outcome of those talks. A judge would still have give final approval to the deal.
Lerach would be the second former Milberg attorney to plead guilty in connection with the case. The other would be indicted former partner David Bershad, who plead guilty back in July to similar charges. Steven Schulman, a third attorney from Milberg continues to deny kickback-related charges, as does the firm itself.
Please step back and allow the dancing on the grave to begin. Overlawyered, I'm looking at you. Point of Law, don't disappoint me now.
Personally, I'm biased. I'll admit it. I've worked in product safety and consumer advocacy. I also cut my teeth as an investigator working on too many securities class action lawsuits not to have my sympathies with Lerach and the plaintiffs' bar. Frankly, I can count the number of cases where something significant wasn't found - probably on one hand. And yet clearly you must play by the rules, rules which it seems were broken.
Of couse, the guilty plea isn't what burned Lerach's rep. Even before the kickback case got going in earnest (about 6 years into the 7 year investigation) Lerach was a already a polarizing figure. His tactics over the year have done little to endear him to the other side of the aisle, but his success on behalf of investors have also not been insignificant.
The legal profession might be a bit dirtier for Lerach's influence and, lets call it zealous advocacy, but you can't tell me that business isn't also a little cleaner as a result. I won't mourn his rightful prosecution but I don't plan on celebrating it either.
-- MDT
9/02/2007
The word coming in from all over creation is that Lerach will accept a guilty plea on one count of conspiracy for which he would face a sentence of 12 to 24 months and an $8 million fine. It is widely known that Lerach and his lawyers have been negotiating with federal prosecutors for some time now and this purported agreement apparently reflects the outcome of those talks. A judge would still have give final approval to the deal.
Lerach would be the second former Milberg attorney to plead guilty in connection with the case. The other would be indicted former partner David Bershad, who plead guilty back in July to similar charges. Steven Schulman, a third attorney from Milberg continues to deny kickback-related charges, as does the firm itself.
Please step back and allow the dancing on the grave to begin. Overlawyered, I'm looking at you. Point of Law, don't disappoint me now.
Personally, I'm biased. I'll admit it. I've worked in product safety and consumer advocacy. I also cut my teeth as an investigator working on too many securities class action lawsuits not to have my sympathies with Lerach and the plaintiffs' bar. Frankly, I can count the number of cases where something significant wasn't found - probably on one hand. And yet clearly you must play by the rules, rules which it seems were broken.
Of couse, the guilty plea isn't what burned Lerach's rep. Even before the kickback case got going in earnest (about 6 years into the 7 year investigation) Lerach was a already a polarizing figure. His tactics over the year have done little to endear him to the other side of the aisle, but his success on behalf of investors have also not been insignificant.
The legal profession might be a bit dirtier for Lerach's influence and, lets call it zealous advocacy, but you can't tell me that business isn't also a little cleaner as a result. I won't mourn his rightful prosecution but I don't plan on celebrating it either.
-- MDT
Labels: Bill Lerach, David Bershad, Lerach, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman, Steven Schulman
Lerach Plea Deal in the Works?
LABizObserved, which I've mentioned before as a blog to watch, has details on a supposed plea agreement that Bill Lerach is said to have been working out with federal prosecutors. Similar insinuations have come from the WSJ alongside the formal announcement of Lerach's August 31st retirement date. That Lerach had been in conversation with prosecutors is not exactly news, but the idea that a plea deal is close to done is certainly interesting stuff. The next few weeks will tell the tale... In the meantime, here's another Lerach retrospective from The UK's Independent.
-- MDT
8/31/2007
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, plea agreement
And the Lerach "Obits" Keep Coming...
Bill Lerach Retirement Date Announced
In a statement released earlier in the week the firm of Lerach Coughlin Stoia Geller Rudman & Robbins announced that effective August 31st they would be dropping "Lerach" from their name. This move signals the expected retirement of firm co-founder and big gun (arguably the biggest gun in class action litigation), William S. Lerach.
Bill Lerach has spend the last year or so increasingly dogged by the results of a federal investigation into he and his former colleagues at plaintiff firm Milberg Weiss. After seven years of digging the probe heated up this year as authorities turned up the heat on key witnesses like former Milberg lead plaintiffs; retired entertainment attorney, Seymour Lazar and and the colorful eye doctor, art dealer and insurance fraudster, Steven Cooperman.
Since then we've seen indictments, resignations and, just perhaps, the end of an era. Lerach has yet to be indicted himself and may never be, but he remains one of the biggest fish in the case and - no doubt - the one prosecutors were looking to land all along. Amid all the speculation over whether an indictment of Lerach would be forthcoming murmers started about a potential retirement, one that might spare his current firm should Lerach be prosecuted.
It appears that August 31st will be the date.
Lerach, with typical brass, had this to say, “I have appreciated the opportunity to fight for the victims of corporate fraud. However, I realize that my success has made me a target,” Mr. Lerach said in a statement. “These allegations have proven to be personally time-consuming, and I have decided to focus single-mindedly on putting the matter behind me once and for all.”
-- MDT
8/29/2007
Bill Lerach has spend the last year or so increasingly dogged by the results of a federal investigation into he and his former colleagues at plaintiff firm Milberg Weiss. After seven years of digging the probe heated up this year as authorities turned up the heat on key witnesses like former Milberg lead plaintiffs; retired entertainment attorney, Seymour Lazar and and the colorful eye doctor, art dealer and insurance fraudster, Steven Cooperman.
Since then we've seen indictments, resignations and, just perhaps, the end of an era. Lerach has yet to be indicted himself and may never be, but he remains one of the biggest fish in the case and - no doubt - the one prosecutors were looking to land all along. Amid all the speculation over whether an indictment of Lerach would be forthcoming murmers started about a potential retirement, one that might spare his current firm should Lerach be prosecuted.
It appears that August 31st will be the date.
Lerach, with typical brass, had this to say, “I have appreciated the opportunity to fight for the victims of corporate fraud. However, I realize that my success has made me a target,” Mr. Lerach said in a statement. “These allegations have proven to be personally time-consuming, and I have decided to focus single-mindedly on putting the matter behind me once and for all.”
-- MDT
Labels: Bill Lerach, kickbacks, Lerach, Milberg, Milberg Weiss, Seymour Lazar, Steven Cooperman
Back in the Saddle, A Little Catching Up to Do
Hey there Daily Caveat readers...it feels good to get back on here and post a few things while baby and mom are napping. Thanks to everyone who sent along well wishes as well as articles and things to keep me in the loop. So, what did I miss while in the land of vomit and diapers? For starters, a few things:
-- MDT
8/21/2007
- Greece practices hedge fiend catch and release program with fugitive Angelo Haligiannis.
- The Bank of Montreal opens up about their ongoing natural gas trading investigation.
- Munich-based Siemens prosecutors met yesterday with their counterparts at the SEC.
- Trial of former manager, Kourosh Partow, gives window into blind-eye culture at Countrywide Financial.
- Three of four defendants in Peregrine Systems fraud case will be retried after jury deadlock.
- Reuters debates the mixed legacy of class action king and soon-to-be retiree, Bill Lerach.
-- MDT
Labels: Angelo Haligiannis, Bank of Montreal, Bill Lerach, Countrywide, Kourosh Partow, Peregrine Systems, Siemens
WSJ's Lattman Muses Over the Future of a Lerach-less Lerach Coughlin
Is that wistfullness I hear?
As always with the WSJ Lawblog, half the fun is in the comments.
-- MDT
7/18/2007
As always with the WSJ Lawblog, half the fun is in the comments.
-- MDT
Labels: Bill Lerach, indictment, kickbacks, Lerach, Milberg, Milberg Weiss
Motion(s) on the Milberg Indictment
Several defendants in the Milberg kickback case have filed motions challenging the legitimacy of the charges against them, most particularly those charges relating to "honest services fraud." Federal prosecutors have just filed their first response to these dismissal motions. As you might imagine, they intend for the charges to stick. Details at Law.com.
-- MDT
7/12/2007
-- MDT
Labels: Bill Lerach, indictment, kickbacks, Milberg
LA TImes Recaps the Milberg Investigation
Missed a few details along the way? The LA Times has you covered, courtesy The China Standard. Of course, all you need to do is hit some of the tags below for The Daily Caveat to get you caught all the way up.
-- MDT
7/10/2007
-- MDT
Labels: Bill Lerach, kickbacks, Milberg Weiss
Milberg's David Bershad Pleads Guilty on Kickback Charges
Formerly a name partner at embattled plaintiff firm, Milberg Weiss, David Bershad has plead guilty on conspiracy charges stemming from the Justice Department's seven year long investigation into business practices at his former firm.
Word on the street for the last few weeks had been that Bershad had started dealing and that a plea deal was imminent. Coincidentally or not, this talk of a Bershad cutting a plea occurred simultaneously with the leak about Bill Lerach's planned retirement.
Whatever the other undisclosed terms of Bershad's deal might be, we know that Bershad will forfeit $7.5 million, pay a $250,000 fine and - most importantly - cooperate with prosecutors in their ongoing investigation.
The Feds are still working on landing the big fish - Bill Lerach and Melvyn Weiss. This move by Bershad definitely puts the hooks a bit closer than they were just a week ago.
-- MDT
6/29/2007
Word on the street for the last few weeks had been that Bershad had started dealing and that a plea deal was imminent. Coincidentally or not, this talk of a Bershad cutting a plea occurred simultaneously with the leak about Bill Lerach's planned retirement.
Whatever the other undisclosed terms of Bershad's deal might be, we know that Bershad will forfeit $7.5 million, pay a $250,000 fine and - most importantly - cooperate with prosecutors in their ongoing investigation.
The Feds are still working on landing the big fish - Bill Lerach and Melvyn Weiss. This move by Bershad definitely puts the hooks a bit closer than they were just a week ago.
-- MDT
Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss
Lerach and Weiss Turned Down Plea Agreement in Kickback Probe
So says the Los Angeles Daily Journal. Reportedly Melvyn Weiss and Bill Lerach, the federal government's two biggest targets in their kickback probe of Milberg Weiss lit igation practices, both turned down a potential plea agreement that would have seen them each serve three to four years in prison. For further details, start with this post from CNNMoney's Roger Parloff and from there you can get to the original article.
-- MDT
6/22/2007
-- MDT
Labels: Bill Lerach, kickbacks, Melvyn Weiss, Milberg Weiss, securities
Stonridge Reckoning For Securities Industry
Stoneridge v Scientific-Atlanta - what The Economist is calling the most important securities litigation clash in a generation. The SEC's has come out in favor of investors, the President not so much. What will ultimately happen when the Supreme Court gets involved, although their predilection (in the court's current incarnation) for siding with business is not exactly a secret, is anyone's guess. But they ARE guessing. And guessing. And guessing.
-- MDT
6/08/2007
-- MDT
Labels: Bill Lerach, class action, securities, Stoneridge
Lerach Partner Confirms Retirement By Year's End
Well there it is...
"I anticipate that Bill will retire before the end of the year," said Patrick Coughlin, a co-founder of the San Diego-based Lerach Coughlin Stoia Geller Rudman & Robbins LLP.
Details...SanLuisObispo.com.
-- MDT
6/05/2007
"I anticipate that Bill will retire before the end of the year," said Patrick Coughlin, a co-founder of the San Diego-based Lerach Coughlin Stoia Geller Rudman & Robbins LLP.
Details...SanLuisObispo.com.
-- MDT
Labels: Bill Lerach, kickbacks, Milberg
Your Daily Milberg...
You know you want it...
WSJ's Peter Lattman shines some light on David Bershad, former Milberg partner who held the firm's purse strings. Bershad has been facing an indictment but has recently made a deal with prosecutors, touching off specualtion about exactly what sort of information he might be sharing with them about his former associates.
Larry Ribstein at Ideopblog ponders the Ironies of Lerach. Worth mentioning if only for the reference to Mr. Lerach's hair as daunting. From seeing it in person (in a mall parking lot in Honolulu - yes, I have seen Lerach in flip-flops.) I would have gone with hypnotizing, but daunting fits too. I don't often see eye to eye with Ideoblog, but Ribstein's punditry is to be reckoned with. Daunting, even.
Also from the WSJ, the SEC will apparently side with shareholders when it comes to the legitimacy of filing suit against third parties for the actions of the shareholders' company. While the issue arose from an unrelated case, the apparent outcome is sure to help Lerach Coughlin's current case pursing compensation from investment banks on behalf of former Enron shareholders.
-- MDT
6/04/2007
WSJ's Peter Lattman shines some light on David Bershad, former Milberg partner who held the firm's purse strings. Bershad has been facing an indictment but has recently made a deal with prosecutors, touching off specualtion about exactly what sort of information he might be sharing with them about his former associates.
Larry Ribstein at Ideopblog ponders the Ironies of Lerach. Worth mentioning if only for the reference to Mr. Lerach's hair as daunting. From seeing it in person (in a mall parking lot in Honolulu - yes, I have seen Lerach in flip-flops.) I would have gone with hypnotizing, but daunting fits too. I don't often see eye to eye with Ideoblog, but Ribstein's punditry is to be reckoned with. Daunting, even.
Also from the WSJ, the SEC will apparently side with shareholders when it comes to the legitimacy of filing suit against third parties for the actions of the shareholders' company. While the issue arose from an unrelated case, the apparent outcome is sure to help Lerach Coughlin's current case pursing compensation from investment banks on behalf of former Enron shareholders.
-- MDT
Labels: Bill Lerach, Melvyn Weiss, Milberg Weiss
Lerach Retirement - The Speculation Continues
The New York Times continues to ponder what exactly we can discern from the purported retirement of famed plaintiff attorney, Bill Lerach. The bane of the Overlawyered set, Lerach made his name at securities class action juggernaut, Milberg Weiss. After a falling out with Milberg's founder Melvin Weiss, Lerach broke out on his own in 2004 four.
Obviously the last few months haven't been stellar for Milberg, what with partners under indictment and a firm-wide investigation ongoing into the use of kickback payments to compensate lead plaintiffs for participating in the firm's class actions. Speculation is well under way that Lerach's departure may mean that the seven year investigation into his former firm is finally catching up to him.
While no one in the know is talking just yet, the NYT speculates that a Lerach resignation could be a signal of a looming deal with federal prosecutors, one that would spare his firm should indictments start raining down. For sure, deals are being thrown around left and right at the moment, but none so far that seem to favor Lerach.
Last week, former Milberg partner David Bershad struck his own deal with federal prosecutors, pleading guilty to some of the charges against him. The question is, in exchange for what - and whether the second indicted Milberg partner, Steven Schulman follow suit. There is even word that Milberg Weiss is seeking a firm-wide deal.
Whatever the outcome, no one is calling any of these maneuverings good for Lerach and many are linking the dealings to talk of Lerach's retirement...and while the former partners threaten to do each other in, rival securities firms are moving in to pick up the slack.
--MDT
5/31/2007
Obviously the last few months haven't been stellar for Milberg, what with partners under indictment and a firm-wide investigation ongoing into the use of kickback payments to compensate lead plaintiffs for participating in the firm's class actions. Speculation is well under way that Lerach's departure may mean that the seven year investigation into his former firm is finally catching up to him.
While no one in the know is talking just yet, the NYT speculates that a Lerach resignation could be a signal of a looming deal with federal prosecutors, one that would spare his firm should indictments start raining down. For sure, deals are being thrown around left and right at the moment, but none so far that seem to favor Lerach.
Last week, former Milberg partner David Bershad struck his own deal with federal prosecutors, pleading guilty to some of the charges against him. The question is, in exchange for what - and whether the second indicted Milberg partner, Steven Schulman follow suit. There is even word that Milberg Weiss is seeking a firm-wide deal.
Whatever the outcome, no one is calling any of these maneuverings good for Lerach and many are linking the dealings to talk of Lerach's retirement...and while the former partners threaten to do each other in, rival securities firms are moving in to pick up the slack.
--MDT
Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg Weiss, Steven Cooperman, Steven Schulman
Bill Lerach Calls it Quits
William S. Lerach, one of the most famous litigators in America has called it a day. It has been reported by Fortune magazine that Lerach, the plantiff attorney most famous for representing shareholders of Enron and the mind who launched a thousand class action lawsuits is planning to leave the namesake firm he founded only three years ago.
Lerach made is name with Milberg Weiss, another lawfirm famous for its work on behalf of aggrieved investors. What happens next for Lerach is anyone's guess - he has yet to even formerly announce his departure but speculation regarding his fate has already begun. Thusfar Lerach has remained largely untouched by the kickback scandal that has engulfed his former colleagues at Milberg Weiss.
Whether that will remain the case is no certain thing. News that indicted former Milberg partner David Bershad is considering a settlement with federal investigators that would include a guilty plea in exchange for his cooperation does not exactly bode well for Lerach. He is certainly a big fish and federal prosecutors have spent most of the last decade trying to catch him at dirty pool.
Lerach, for his part, has long insisted that prosecutors persistent interest in him is based on politics, not perfidy...
-- MDT
5/11/2007
Lerach made is name with Milberg Weiss, another lawfirm famous for its work on behalf of aggrieved investors. What happens next for Lerach is anyone's guess - he has yet to even formerly announce his departure but speculation regarding his fate has already begun. Thusfar Lerach has remained largely untouched by the kickback scandal that has engulfed his former colleagues at Milberg Weiss.
Whether that will remain the case is no certain thing. News that indicted former Milberg partner David Bershad is considering a settlement with federal investigators that would include a guilty plea in exchange for his cooperation does not exactly bode well for Lerach. He is certainly a big fish and federal prosecutors have spent most of the last decade trying to catch him at dirty pool.
Lerach, for his part, has long insisted that prosecutors persistent interest in him is based on politics, not perfidy...
-- MDT
Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg Weiss
Enron Shareholders Pursue Banks for Restitution
But will they get it? This Lerach-led lawsuit was stalled back in March, but the group is currently seeking the support of the SEC to get the case back on course after being rejected by an appeals court. Several banks made no-fault settlements back in 2003. This current suit concerns several additional banks - Merrill Lynch & Co., Credit Suisse First Boston and Barclays.
See The Houston Chronicle for further details.
-- MDT
4/10/2007
See The Houston Chronicle for further details.
-- MDT
Labels: accounting fraud, Bill Lerach, Enron, securities
European Firm gets the Lead Plaintiff Nod in Dell Fraud Class Action
Union Asset Management Holding AG will be the lead plaintiff in the forthcoming class action lawsuit filed against computer-maker, Dell. Motley Rice, a South Carolina law firm, is representing the union. If you are keeping score, Lerach Coughlin did submit a petition for lead counsel but was rejected... The complaint against Dell alleges that several of the company's C-suiters manipulated earnings and enriched themselves by selling off stock at inflated prices before the fall.
Further detail on the Dell litigation can be found here. Also, check out this article which provides many details on allegations against Dell that appear in in the Lerach complaint.
3/06/2007
Further detail on the Dell litigation can be found here. Also, check out this article which provides many details on allegations against Dell that appear in in the Lerach complaint.
Labels: Bill Lerach, class action, Dell, Motley Rice, Ontario Securities Commission
Lerach Rebuffed on Lead Counsel Slot for Comverse Class Action
Now don't go reading anything into this... Eastern District Judge Nicholas G. Garaufi simply observed that Lerach Coughlin's client, the Plumbers and Pipefitters National Pension Fund did not have the largest financial interest in the pending securities class action against telecom co., Comverse (who provided us a few months of blog-fodder when its CEO, Kobi Alexander turned fugitive).
Instead, Judge Garaufi granted lead counsel status to Pomerantz Haudek Block Grossman & Gross, which is representing Menorah Group, which was determined by the court to have suffered the greatest losses.
-- MDT
2/02/2007
Instead, Judge Garaufi granted lead counsel status to Pomerantz Haudek Block Grossman & Gross, which is representing Menorah Group, which was determined by the court to have suffered the greatest losses.
-- MDT
Labels: Bill Lerach, class action, Comverse, Kobi Alexander, securities
Milberg Investigation Inches Closer to Lerach With Guilty Plea From Serial Plaintiff, Steven Cooperman
Steven Cooperman is a colorful character. Eye doctor, art dealer bitter divorcee and serial securities litigation plaintiff for the biggest firm in the business, the embattled Milberg Weiss. And did I mention insurance fraudster? Well that too...
Convicted in 2000 of insurance fraud via faked art theft and facing years in prison, Cooperman offered information to prosecutors about Milberg's alleged kickback payments to selected lead plaintiffs in their securities class action cases. In exchange, Cooperman was hoping for the soft touch from federal prosecutors. The deal that Cooperman struck remains under seal.
Cooperman's information on Milberg's practices was seconded by Richard Purtich, a Los Angeles insurance lawyer who claimed that he had personally been the conduit for millions in payments from Milberg to Cooperman. Cooperman, in his own divorce proceedings had himself seperately admitted taking payments from Purtich's hand.
In his divorce testimony, Cooperman also mentioned two direct meetings with Bill Lerach, the former Milberg star who has so far remained untainted by the investigation and indictment of his former firm. Cooperman claimed that on one occasion Lerach personally gave him an enevlope stuffed with $16,000 in cash.
One case in particular in which Cooperman had served as the lead plaintiff proved to be of special interest to investigators: the 1995 AHI Healthcare shareholder class action. Former Milberg partner Alan Schulman, who has been openly hostile to the Milberg's conduct was the team leader on the AHI case. Schulman is known to be cooperating with investigators, giving prosecutors special insight into the case.
This week Cooperman plead guilty to taking more than $6 million in illegal kickbacks from Milberg Weiss and the 50 some odd pages of documentation filed indicates that prosecutors are closing on on Lerach. Court documents filed earlier this week make specific reference to "Partner B," the unnamed individual in the Milberg indictment long believed to be Bill Lerach, placing him at the center of the kickback scheme.
Lerach's lawyers are playing tough, but this can't be good news. Expected, but still not good...
-- MDT
1/02/2007
Convicted in 2000 of insurance fraud via faked art theft and facing years in prison, Cooperman offered information to prosecutors about Milberg's alleged kickback payments to selected lead plaintiffs in their securities class action cases. In exchange, Cooperman was hoping for the soft touch from federal prosecutors. The deal that Cooperman struck remains under seal.
Cooperman's information on Milberg's practices was seconded by Richard Purtich, a Los Angeles insurance lawyer who claimed that he had personally been the conduit for millions in payments from Milberg to Cooperman. Cooperman, in his own divorce proceedings had himself seperately admitted taking payments from Purtich's hand.
In his divorce testimony, Cooperman also mentioned two direct meetings with Bill Lerach, the former Milberg star who has so far remained untainted by the investigation and indictment of his former firm. Cooperman claimed that on one occasion Lerach personally gave him an enevlope stuffed with $16,000 in cash.
One case in particular in which Cooperman had served as the lead plaintiff proved to be of special interest to investigators: the 1995 AHI Healthcare shareholder class action. Former Milberg partner Alan Schulman, who has been openly hostile to the Milberg's conduct was the team leader on the AHI case. Schulman is known to be cooperating with investigators, giving prosecutors special insight into the case.
This week Cooperman plead guilty to taking more than $6 million in illegal kickbacks from Milberg Weiss and the 50 some odd pages of documentation filed indicates that prosecutors are closing on on Lerach. Court documents filed earlier this week make specific reference to "Partner B," the unnamed individual in the Milberg indictment long believed to be Bill Lerach, placing him at the center of the kickback scheme.
Lerach's lawyers are playing tough, but this can't be good news. Expected, but still not good...
-- MDT
Labels: Bill Lerach, Melvyn Weiss, Milberg, Milberg Weiss, securities, Steven Cooperman
More Details on Lerach Lawfirm Removal from Halliburton Litigation
The Daily Caveat mentioned in passing several days ago that Lerach Coughlin, home of the Wall Street Journal's favorite litigator, Bill Lerach, had been removed from upcoming securities fraud litigation against Halliburton. The client in that case, the Archdiocese of Milwaukee Supporting Fund Inc., has since given more details on the removal of Lerach's firm as well as co-lead counsel, David Scott of Scott + Scott, linking the switch directly to the continuing indictment against Lerach's former firm, Milberg Weiss. As was previously mentioned, DC uber-attorny David Boies has picked up the reins of the case.
Meanwhile Milberg and the plaintiff's bar in general are bracing for what some are calling the trial of the century.
-- MDT
11/28/2006
Meanwhile Milberg and the plaintiff's bar in general are bracing for what some are calling the trial of the century.
-- MDT
Labels: Bill Lerach, class action, David Boies, Halliburton, indictment, Melvyn Weiss, Milberg, Milberg Weiss, securites
Milberg Trial Has a Date, New Charges Teased
Federal prosecutors made it known yesterday that their ongoing probe into class action giant, Milberg Weiss may yet expand further. The Feds have been doggedly pursuing information on Milberg bad acts for years. They finally hit paydirt with a perfect storm of informants and double-dealers, who provided regulators with details on kickbacks ($11.3 million over the last 25 years) allegedly given by Milberg to regular, repeated lead plaintiffs in its class action cases.
Thus far, indictments have been brought, lawyers have fled, offices have closed and not guilty pleas have been entered and Milberg partners, Steven Schulman and David Bershad are awaiting trial, a trial that now has a date - January 8, 2008.
The new charges teased reportedly relate to potentially false invoices submitted on behalf of expert witnesses for work that was never performed. One wonders whether such false invoices might also relate to work conducted by outside investigators on Milberg's behalf. While in recent years Milberg had moved much of this work to internal staff, they have been a great and lucrative source of work for investigators for many years.
In related news, Bill Lerach, the famous former partner in Milberg Weiss who a few years back hung out his own shingle, has remained untouched by the case against Milberg. It seems at the present time, in fact, that no additional individuals will added to the prosecutors case. But that hasn't stopped the matter from having an impact.
One has to assume, for example, that the indictment played a role in the request to have Lerach's firm removed as lead counsel in the ongoing $4 billion class action lawsuit against Haliburton, in favor of David Boies.
Thus far, indictments have been brought, lawyers have fled, offices have closed and not guilty pleas have been entered and Milberg partners, Steven Schulman and David Bershad are awaiting trial, a trial that now has a date - January 8, 2008.
The new charges teased reportedly relate to potentially false invoices submitted on behalf of expert witnesses for work that was never performed. One wonders whether such false invoices might also relate to work conducted by outside investigators on Milberg's behalf. While in recent years Milberg had moved much of this work to internal staff, they have been a great and lucrative source of work for investigators for many years.
In related news, Bill Lerach, the famous former partner in Milberg Weiss who a few years back hung out his own shingle, has remained untouched by the case against Milberg. It seems at the present time, in fact, that no additional individuals will added to the prosecutors case. But that hasn't stopped the matter from having an impact.
One has to assume, for example, that the indictment played a role in the request to have Lerach's firm removed as lead counsel in the ongoing $4 billion class action lawsuit against Haliburton, in favor of David Boies.
Labels: Bill Lerach, David Bershad, David Boies, kickbacks, Lazar, Melvyn Weiss, Milberg, Milberg Weiss
