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Does the KPMG case help Milberg Weiss?



That's what the law firm appears to claim about the KPMG case in a press release reported by Peter Lattman. But other than the words "Thompson Memo," there are no similarities.

  • The concern in Stein was that the DOJ actually forced KPMG to withhold attorneys' fees for its employees. But KPMG did cave; Milberg Weiss didn't. And its charged "employees" are multi-millionaire partners capable of affording competent counsel, removing any concern of inadequate representation.
  • KPMG was risking indictment for behavior of a small portion of the firm. But the indicted Milberg Weiss partners are name partners with 33% ownership of the firm—and if "Partner A", identified by many to be Mel Weiss, is also indicted, one is talking about a majority of the shares being implicated. This isn't a case of a corporation being forced to choose between throwing its low-level employees overboard and being irresponsible to its shareholders; here, the shareholders are the alleged wrongdoers, and the alleged wrongdoing is alleged to be part of the Milberg Weiss business model.
  • There's more than just Milberg Weiss's refusal to implicate its partners behind its being charged. The investigation started in 1999; subpoenas went out in 2003; Milberg Weiss was allegedly engaging kickbacks through 2005; and didn't hire its well-publicized compliance officer until shortly before the May 2006 indictment.

For more, see my recent Congressional testimony, which reviewed the Milberg Weiss indictment in the course of discussing the pending H.R. 5491 and the need for more measures to prevent kickbacks and improper relationships between lead plaintiffs and plaintiffs' counsel.

 

 


Isaac Gorodetski
Project Manager,
Center for Legal Policy at the
Manhattan Institute
igorodetski@manhattan-institute.org

Katherine Lazarski
Press Officer,
Manhattan Institute
klazarski@manhattan-institute.org

 

Published by the Manhattan Institute

The Manhattan Insitute's Center for Legal Policy.