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WSJ: The Trial Lawyers' Enron - Kickbacks and other tricks of the class-action trade.
Wall Street Journal ^ | July 7, 2005 | Editorial

Posted on 07/07/2005 5:57:25 AM PDT by OESY

...If a recent federal indictment that refers to Milberg Weiss is anything to go by, the trial bar has its Enron....

Sham "screenings" to round up asbestos plaintiffs, forum shopping for friendly juries, "coupon" settlements that enrich only lawyers and frivolous lawsuits have all become staples of today's tort system. Yet they have received almost no media, much less legal, scrutiny.

...The focus of the charges is retired Palm Springs lawyer Seymour Lazar, who seems to have had a second career as a plaintiff in Milberg Weiss lawsuits. From 1976 to 2004, Mr. Lazar and family members... served as named plaintiffs in more than 50 class actions....

The indictment claims Milberg Weiss quietly slipped Mr. Lazar and family members a share of some $44 million in attorney's fees that it made from these cases. It did so by secretly funneling at least $2.4 million of these kickbacks to Mr. Lazar's lawyer, Paul Selzer, as well as to others....

All of this violates legal norms in which lead plaintiffs... are obliged to act in the best interest of all parties to the class action.

The larger scandal is that few, if any, of these suits had any real merit in the first place. Several cited in the indictment are the kind of "shakedown" suits that helped make Milberg Weiss famous. Many were filed in response merely to a drop in the company's share price, which Mr. Lazar would use as an excuse to claim in a lawsuit that management had "misled" shareholders.

Companies typically settle these suits rather than endure costly and time-consuming litigation....

One question is why Milberg Weiss wasn't indicted given the evidence that is already public. The court papers... further say Milberg Weiss then disguised the payments in its own accounting and issued false tax forms....

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Government; News/Current Events; Politics/Elections
KEYWORDS: classactions; dennys; doj; fiduciary; justice; kickbacks; lawyers; lazar; lockheed; milbergweiss; pacificgas; selzer; standardoil; tortreform; triallawyers; unitedairlines; wrgrace
Liberals in league with class-action trial lawyers are willing to do whatever it takes to punish America while funding their causes, even if it means bankrupting companies and killing thousands of jobs.

In addition, their effort to make surviving American companies uncompetitive in the global economy is one of the strongest arguments against antibusiness liberal rule. Kickbacks and other illegalities illustrate how tenuous their position is. Let sunlight, and federal prosecutors, disinfect these scoundrels.

1 posted on 07/07/2005 5:57:30 AM PDT by OESY
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To: OESY

And remember, trial lawyers are the #1 money contributors to the democrat party...


2 posted on 07/07/2005 5:59:44 AM PDT by 2banana (My common ground with terrorists - They want to die for Islam, and we want to kill them.)
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To: OESY
Lawyers finding a way to "funel money?"

I thought that was the strict property of only congresscritters, they are mostly lawyers come to think of it....LOL....

3 posted on 07/07/2005 6:02:15 AM PDT by litehaus
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To: OESY

The only people who EVER get anything out of class action lawsuits are the lawyers and that is why I never respond to the notices.


4 posted on 07/07/2005 6:08:04 AM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: OESY
I'm SHOCKED!


5 posted on 07/07/2005 6:20:18 AM PDT by xcamel (Deep Red, stuck in a "bleu" state.)
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To: OESY
Hmm...would that be THIS Milberg Weiss? Now after you see 2004, go back and look by the electioon cycles!

Hmm...DemonRAT donations...who'da thunk it!

6 posted on 07/07/2005 6:30:45 AM PDT by Itzlzha ("The avalanche has already started...it is too late for the pebbles to vote")
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To: OESY
Nah, we need more Chuck Schumer/John Edwards "activist judges."

Can't have any "conservatives" who follow the law.

< /massive bitter sarcasm off >


7 posted on 07/07/2005 6:31:48 AM PDT by FormerACLUmember (Honoring Saint Jude's assistance every day.)
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To: lepton

bookmark bump


8 posted on 07/07/2005 12:58:45 PM PDT by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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