Milberg, Weiss: A Class-Action-Sized Scam

By May 20, 2006Briefly Legal

Way back in July of last year we wrote about a flurry of stories and editorials in the Wall Street Journal and the New York Times, among other places, alleging colossal funny business by one of the nation’s leading class action firms, Milberg, Weiss, Bershad and Schulman. We called that piece, “The Feds Close in on a Toxic Factory“, because this firm seemed toxic indeed.

Well the front page of the Wall Street Journal reported yesterday that the criminal indictments were finally handed down as expected. The story begins:

“A federal grand just indicted the nation’s best-known class-action law firm….Alleging a 20-year conspiracy to funnel kickbacks to plaintiffs in dozens of securities class-action cases.”

According to the indictment, named partner Mr. Bershad, “used cash from a safe in a credenza in his office to pay kickbacks to plaintiffs.” If it’s possible to lower the image of trial lawyers, this indictment will do exactly that. Here’s a link to more commentary on yesterday’s indictment from our friends over at Overlawyered.com.

Join the discussion 2 Comments

  • adam says:

    Nothing said about them impugns the quality of their legal work, so I hope that they continue doing their good work while they fight the charges.
    http://www.Johnbeckland.com/john-beck.html

  • curt beck says:

    I used to work at a similar type of “shop” in NY, Abbey Gardy LLP (it recently changed it’s name). The lead partner at that class action firm, Arthur N. Abbey, did the same thing Bershad and Schulman are accused of doing — paying lead plaintiffs under the table — as well as a host of other ethical improprieties. I finally resigned because their conduct was so far beneath what Code and Rules call for.