The Daily Caveat is written by Michael Thomas, a recovering corporate investigator in the Washington, DC-area. [More]
Got scoops? Comments? Send'em on, care of
5/18/2009
MIlberg Looks North for New Business
Anonymoussaid...
9/28/2008
Shareholder Lawsuits in the Wake of the Financial Bailout
Uphill Battle For Shareholder Suits
Securities Suits Up in March
Did I Mention That it is a Bad Week for KMPG
The End of Milberg Weiss?
Lerach Sentencing A Sign of Class Action Clean Up
Bill Lerach's Former Firm Diversifies
University of Phoenix Parent Faces Nearly $300 Million Judgement in Shareholder Suit
Stoneridge Verdict is In
Securities Suits Back on the Rise?
Biovail Buys it sWay out of Class Action Suit
The King is Dead, Long Live the King
Ripples of Lerach Guilty Plea Reach Coca Cola Class Action
Stoneridge The Roe v. Wade of Securities Law?
Downplaying Stoneridge? 10/08/2007
Securities Lawsuits Down
Spring Brings SEC Examination of Securities Class Action
The American Lawyer Wonder Where the Security Class Actions Have Gone
Milberg's Schulman Continues to Battle Charges Against Him
Lerach and Weiss Turned Down Plea Agreement in Kickback Probe
Stonridge Reckoning For Securities Industry
Enron Broadband Executive Sentenced
Ponzi Fraudster Linked to Ferris Baker Watts, Advest Brokers
Amgen Gets Love Letter From New York AG
Better Day For Milberg, Tyco Settles for $3 Billion
Enron Shareholders Pursue Banks for Restitution
Nacchio Guilty on 19 Counts
WSJ Law Blog Q&A With Melvin Weiss
Milburg Indictment Results in Meta Class Action
Stockman Securities Fraud Charges Become Official
Nortel Execs Face Fraud Charges
Reading List: Race to the Bottom
Lerach Rebuffed on Lead Counsel Slot for Comverse Class Action
Milberg Investigation Inches Closer to Lerach With Guilty Plea From Serial Plaintiff, Steven Cooperman
Apple Stock Option Class Action Has a Lead Plaintiff
Supreme Court to Tighten Securities Class Action Standards?
MIlberg Looks North for New Business
The noted, and notorious, securities class action powerhouse is apparently focusing on Canada when it comes to the development of new cases.
--MDT
--MDT
Labels: Canada, class action, Milberg, securities
1 Comments.
Anonymoussaid...
Do you know the runescape power leveling, in the game you need the runescape gold. it can help you increase your level. My friends always asked me how to buy runescape accounts, i do not know he spend how much money to buy the runescape money, when i see him in order to play the game and search which the place can buy it. i also happy with him.
Post a Comment
Shareholder Lawsuits in the Wake of the Financial Bailout
You know they're coming, but how with they fare? Law.com lays down the handicap.
-- MDT
5/08/2008
-- MDT
Labels: lawsuit, securities, shareholders
Uphill Battle For Shareholder Suits
The game has changed.
4/01/2008
Labels: class action, securities
Securities Suits Up in March
And you can get all the gritty details via Kevin LaCroix's D&O Diary. While you're there, take some time to appreciate the great new site design.
Looks great Kevin!
-- MDT
3/27/2008
Looks great Kevin!
-- MDT
Labels: class action, lawsuit, securities, Standford Securities Class Action Clearing House
Did I Mention That it is a Bad Week for KMPG
In addition to their more immediate woes, there is also the small matter of the $80 million hit they'll pay to settle a class action lawsuit for their role in some decade-old questionable account at Xerox. Xerox itself will pay $670 million to bring an end of to the suit.
-- MDT
3/24/2008
-- MDT
Labels: class action, KPMG, securities, Xerox
The End of Milberg Weiss?
With the guilty plea from firm patriarch, Melvin Weiss you know the talk of Milberg's demise is going to make the rounds, never mind that they still top the lists of securities class action firms over the last year. Still, if you're interested in what various persons of interest from around the legal world have to say about Milberg's future, this Portfolio article is your huckleberry.
-- MDT
2/11/2008
-- MDT
Labels: class action, Melvyn Weiss, Milberg, Milberg Weiss, securities
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
2/01/2008
More on the changing face of class action litigation, via the LA Times.
-- MDT
Labels: Bill Lerach, class action, securities, sentencing
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
1/17/2008
Details via The San Siego Tribune.
-- MDT
Labels: Bill Lerach, class action, Coughlin Stoia, Lerach, patents, securities
University of Phoenix Parent Faces Nearly $300 Million Judgement in Shareholder Suit
Lest you think that the Stoneridge verdict was a total game changer...here's a monster verdict in a rare securities case that actually made it to a jury. Apollo Group is the corporate entity behind the ubiquitous internet advertizer, University of Phoenix. The "university" is one of the biggest and most notorious "distance learning" diploma mills around (325,00 students nationwide - PE has locations in 40 states).
At issue in the suit was Apollo's failure to disclose a 2004 probe by the Department of Education that accused University of Phoenix of illegally paying staff members based on the number of students they enrolled. For its part Apollo argued that disclosing the DOE report prematurely would have done unwarranted harm to shareholders. A jury found differently, determining that Apollo should bear responsibility for 60% of shareholder losses.
-- MDT
1/16/2008
At issue in the suit was Apollo's failure to disclose a 2004 probe by the Department of Education that accused University of Phoenix of illegally paying staff members based on the number of students they enrolled. For its part Apollo argued that disclosing the DOE report prematurely would have done unwarranted harm to shareholders. A jury found differently, determining that Apollo should bear responsibility for 60% of shareholder losses.
-- MDT
Labels: Apollo Group, class action, Phoenix University, securities, Stoneridge
Stoneridge Verdict is In
"Scheme Liability" takes a hit with the highe court verdict in Stoneridge Investment Partners v. Scientific-Atlanta - one of the most anticipated cases of '07. Details at Legal Times.
1/09/2008
Labels: scheme liability, securities, Stoneridge
Securities Suits Back on the Rise?
Thank you sub-prime mortgage mess. Speaking of which, isn't it about time for the Stanford Securities Class Action Clearinghouse to issue one of those end of year review reports? Oh hey - lookee here. They're calling it a 43% increase.
-- MDT
12/14/2007
-- MDT
Labels: securities, Stanford Securities Class Action Clearing House, sub-prime mortgage
Biovail Buys it sWay out of Class Action Suit
Of the U.S. suit at least, without admitting any wrongdoing and with no liability. A parallel Canadian suit is still pending, but the company claims to have that just about resolved as well.
11/14/2007
Labels: Biovail, class action, securities, settlement
The King is Dead, Long Live the King
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
10/21/2007
-- MDT
Labels: Bernstein Litowitz and Berger, class action, Sean Coffey, securities
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
10/10/2007
-- MDT
Labels: Bill Lerach, class action, Coca-Cola, securities
Stoneridge The Roe v. Wade of Securities Law?
A bit of the overwrought from the Chicago Tribune... Good coverage on the case can be found at the blog of the National Association of Manufacturers (where I saw the Tribune article).
I'd probably find myself disagreeing with the NAM point of view, but that doesn't mean I don't like their style.
- MDT
I'd probably find myself disagreeing with the NAM point of view, but that doesn't mean I don't like their style.
- MDT
Labels: scheme liability, securities, Stoneridge, third party liability
Downplaying Stoneridge? 10/08/2007
Securities Lawsuits Down
Yes I know that USA Today is a paper practically written in crayon. Still you might find this story on the decline in securities litigation somewhat interesting. Of course, if you keep up with your Stanford Securities Clearing House press releases, you'd already know that their July Mid-Year report shows filings well below the historical average.
-- MDT
9/24/2007
-- MDT
Labels: class action, Making fun of USA Today, securities, Standford Securities Class Action Clearing House
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
8/10/2007
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
The American Lawyer Wonder Where the Security Class Actions Have Gone
Good read from Andrew Longstreth over at Law.com... And for all the current stats on securities litigation, you know you can count on the Stanford Securities Class Action Clearing House.
-- MDT
7/06/2007
-- MDT
Labels: class action, Lerach, Milberg, securities
Milberg's Schulman Continues to Battle Charges Against Him
Steven Schulman, one of the former Milberg Weiss partners facing charges in the ongoing probe of the firm, continues to pursue the dismissal of charges against him. While his former firm talks plea deal, Schulman has expanded his motion seeking a dismissal of charges against him.
His most recent filing addresses the charge of "honest services fraud" arguing that the government's definition is vague and arbitrary. Schulman is also attempting to pick apart the charges of mail fraud and failure to perform his fiduciary duty. Whether he's successful, we'll know in time.
Law.com has further details on Schulman's legal maneuverings.
-- MDT
6/29/2007
His most recent filing addresses the charge of "honest services fraud" arguing that the government's definition is vague and arbitrary. Schulman is also attempting to pick apart the charges of mail fraud and failure to perform his fiduciary duty. Whether he's successful, we'll know in time.
Law.com has further details on Schulman's legal maneuverings.
-- MDT
Labels: class action, indictment, kickbacks, Melvyn Weiss, Milberg, Milberg Weiss, securities, Steven Schulman
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
6/20/2007
-- MDT
Labels: Bill Lerach, class action, securities, Stoneridge
Enron Broadband Executive Sentenced
Former CEO of Enron Broadband Services, Kenneth Rice was sentenced yesterday to two years and change for his role in the energy trader's widespread fraud. Rice plead guilty three years ago and awaited sentencing while a steady stream of his former company colleagues faced prosecution - many with the help of his testimony. Further details on the Rice sentencing can be found here, via CFO.com.
-- MDT
6/18/2007
-- MDT
Labels: accounting fraud, Enron, insider trading, Kenneth Rice, securities
Ponzi Fraudster Linked to Ferris Baker Watts, Advest Brokers
Accused Ponzi Fraudster, David Dadante, ripped off more than 100 people who altogether invested tens of millions with him, thinking they were placing their money in a blue chip stock fund. In the end, they were only really placing their cash into Dadante's pockets.
Between 1999 and 2005 he blew through nearly $30 million and when he wasn't busy gambling away investors money, prosecutors say that Dadante and two brokers - one from Advest (now part of Merrill Lynch) and one from Ferris Baker Watts - were busy manipulating the stock price of the Georgria-based Innotrac Corporation.
Late last week Dadante was charged with two counts of securities fraud. His two apparent accomplices have not yet been charged or publicly named. Details here.
5/24/2007
Between 1999 and 2005 he blew through nearly $30 million and when he wasn't busy gambling away investors money, prosecutors say that Dadante and two brokers - one from Advest (now part of Merrill Lynch) and one from Ferris Baker Watts - were busy manipulating the stock price of the Georgria-based Innotrac Corporation.
Late last week Dadante was charged with two counts of securities fraud. His two apparent accomplices have not yet been charged or publicly named. Details here.
Labels: Advest, David Dadante, Ferris Baker Watts, Fraud, ponzi scheme, securities
Amgen Gets Love Letter From New York AG
Subpoena is latin for love, right?
In any case, Amgen was on the receiving end of a compelling request from the New York Attorney General's office.
According to a recent SEC filing the May 10th letter sought wide ranging documentation from the pharmaceutical company, including: data on the company's sales and marketing, medical education, clinical studies, pricing, contracting, licensing and distribution agreements as well as corporate communications.
Amgen is already facing class action litigation filed in the U.S. District Court for the Central District of California. , alleging securities fraud.
-- MDT
5/18/2007
In any case, Amgen was on the receiving end of a compelling request from the New York Attorney General's office.
According to a recent SEC filing the May 10th letter sought wide ranging documentation from the pharmaceutical company, including: data on the company's sales and marketing, medical education, clinical studies, pricing, contracting, licensing and distribution agreements as well as corporate communications.
Amgen is already facing class action litigation filed in the U.S. District Court for the Central District of California. , alleging securities fraud.
-- MDT
Labels: Amgen, class action, New York AG, securities, subpoena
Better Day For Milberg, Tyco Settles for $3 Billion
We've covered some of plaintiff firm, Milberg Weiss's travails this week as it continues to struggle through an ongoing investigation into kickbacks the firm offered to repeat lead plaintiffs. But there are brighter spots for the firm, one being the recent $3 billion settlement of a class action lawsuit brought against Tyco International.
Tyco is of course the famous former home of bad-boy CEO, Dennis Kozlowski. The Milberg-led class action (co-led by Schiffrin, Barroway, Topaz & Kessler) was brought in 2002 on behalf of several pension funds who suffered losses as a result of the fraud at Tyco.
-- MDT
5/11/2007
Tyco is of course the famous former home of bad-boy CEO, Dennis Kozlowski. The Milberg-led class action (co-led by Schiffrin, Barroway, Topaz & Kessler) was brought in 2002 on behalf of several pension funds who suffered losses as a result of the fraud at Tyco.
-- MDT
Labels: class action, Dennis Kozlowski, Melvyn Weiss, Milberg, Milberg Weiss, Schiffrin Barroway, securities, Tyco
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
4/20/2007
See The Houston Chronicle for further details.
-- MDT
Labels: accounting fraud, Bill Lerach, Enron, securities
Nacchio Guilty on 19 Counts
19 of 42 would be a pretty darn good batting average in the MLB. Less so in a guilty verdict. Former Quest CEO Joe Nacchio has been found guilty on 19 counts of insider trading after six days of jury deliberations in his criminal trial. In 2001, over five months Nacchio more than 100 million dollars worth of Quest stock, before disclosing the financial troubles the company was facing. A civil trial relating to the same issues is still pending.
There's more on the Nacchio Guilty verdict at TheOlympian.com.
-- MDT
3/30/2007
There's more on the Nacchio Guilty verdict at TheOlympian.com.
-- MDT
Labels: insider trading, Joe Nacchio, Quest, securities, white collar crime
WSJ Law Blog Q&A With Melvin Weiss
Peter Lattman interviews Melvin Weiss over at the WSJ Law Blog. Weiss comments on the the Tellabs case, the Milberg indictment. Worth a look. And if you're a snarky soul, maybe check out the comments as well.
-- MDT
3/28/2007
-- MDT
Labels: indictment, Melvyn Weiss, Milberg, Milberg Weiss, securities, Tellabs
Milburg Indictment Results in Meta Class Action
According to this newswire, attorney Theodore A. Bechtold is looking for takers amongst former Milberg-led class members for a case pursuing possible violations of duties owed to them in cases led my Milberg.
This feels sort-of like when you stand between two mirrors and it creates infinity...
-- MDT
3/27/2007
This feels sort-of like when you stand between two mirrors and it creates infinity...
-- MDT
Labels: class action, Milberg Weiss, Milburg, securities, Theodore Bechtold
Stockman Securities Fraud Charges Become Official
David Stockman, who served in the Reagan administration from 1981 to 1985, has been accused of perpetrating securities fraud. Stockman along with other executives of automotive manufacturer Collins & Aikman is accused of to mislead investors while inflating earnings. The fraud charges had been teased since at least late last year.
Stockman formerly served as chairman and chief executive Collins & Aikman and is also the co-founder of a private-equity firm - one of the largest shareholders in the auto-parts company.
Collins & Aikman itself has already reached settlements, with both the SEC and the U. S, Attorney for the Southern District of New York. The deal, announced earlier this week, allows Collins and Aikman to avoid prosecution and substantial fines.
Check out more on the Stockman indictment via the Chicago Tribune.
-- MDT
3/13/2007
Stockman formerly served as chairman and chief executive Collins & Aikman and is also the co-founder of a private-equity firm - one of the largest shareholders in the auto-parts company.
Collins & Aikman itself has already reached settlements, with both the SEC and the U. S, Attorney for the Southern District of New York. The deal, announced earlier this week, allows Collins and Aikman to avoid prosecution and substantial fines.
Check out more on the Stockman indictment via the Chicago Tribune.
-- MDT
Labels: accounting fraud, Collins and Aikman, David Stockman, SEC, securities
Nortel Execs Face Fraud Charges
Both U.S. and Canadian regulators have filed charges against a group of former Nortel executives over illegal activities that included lying to investors and reporting false numbers to the SEC. Canada's Ontario Securities Commission and the U.S. SEC are alleging that former Nortel execs conspired to "fix" earnings between 2000 and 2004.
Amongst the group facing charges are former chief executive Frank Dunn, former finance chief Douglas Beatty, and former controller Michael Gollogly. Former controller MaryAnne Pahapill also faces charges from the SEC. Further details on the Nortel charges here, via the FT.
-- MDT
3/06/2007
Amongst the group facing charges are former chief executive Frank Dunn, former finance chief Douglas Beatty, and former controller Michael Gollogly. Former controller MaryAnne Pahapill also faces charges from the SEC. Further details on the Nortel charges here, via the FT.
-- MDT
Labels: accounting fraud, Douglas Beatty, Frank Dunn, homeland security, MaryAnne Pahapill, Michael Gollogly, Nortel, Ontario Securities Commission, securities
Reading List: Race to the Bottom
As you might have noticed, I've been catching up on my blog reading recently. Another new-to-me site that might be of interest to regular readers of this space is theracetothebottom.org. Great looking blog with great content as well. The site is run by University of Denver College of Law professor, J. Robert Brown, Jr. with contributions from his students. Great stuff.
-- MDT
-- MDT
Labels: blogs, Race to the Bottom, securities, SOX
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
1/24/2007
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
Apple Stock Option Class Action Has a Lead Plaintiff
The New York City Employees' Retirement System has the honors. And in related news, has Steve Jobs been meeting with the Feds?
-- MDT
1/10/2007
-- MDT
Labels: Apple, backdating, class action, securities, stock options
Supreme Court to Tighten Securities Class Action Standards?
They'll apparently get the chance when they hear the appeal of Tellabs, Inc., a telecom manufacturer facing allegations that it fraudulently inflated revenues at the expense of shareholders. Further info on the case and the potential impact of the Supremes can be found here, care of the Chicago Tribune. You can also view the Tellabs case docket here.
-- MDT
-- MDT
Labels: class action, Milberg, securities, Tellabs
