June 27, 2005

Today's WSJ ($) has an article on Milberg Weiss potential connection to "professional" plaintiffs who are on call to serve as lead plaintiffs in class action cases. The article details an indictment against a California lawyer who has (together with various family members) alleged to have received some $2.5 million in under the table fees for serving as plaintiffs.

The Money Quote

Class-action lawyers said they feared that an indictment of Milberg Weiss could have far-reaching impact and hamper efforts to recover damages for shareholders and consumers. Michael Hausfeld, a prominent Washington plaintiffs' lawyer, said such a case "could taint private civil enforcement of securities law" and deflect attention from "the egregious corporate misconduct at issue in these suits."

Is this a sledgehammer of irony or what? Posted by Martin F Grace at 09:40 AM | TrackBack (0)