Posted on 05/02/2008 10:58:59 AM PDT by MrLegalReform
Does the Milberg criminal case point to a broader ill in the securities class-action industry? That’s a question being raised by U.S. Rep. John Boehner, the Republican leader in the House.
In this letter expected to be sent to the House Judiciary Committee today, Boehner (pictured) asks the committee to investigate whether plaintiffs lawyers routinely pay kickbacks to shareholder clients, as Milberg is alleged to have done. The firm denies wrongdoing. Four of its former-once-senior partners have pleaded or agreed to plead guilty.
The letter highlights comments that former Milberg partner William Lerach made to the WSJ earlier this year: Lerach called his conduct an “industry practice” and said that “everybody was paying plaintiffs.”
(Excerpt) Read more at blogs.wsj.com ...
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