Legal News

Milberg kickback trial ends with $75 million settlement

By Jason Siegel

A federal judge agreed to drop charges against Milberg after agreeing to a $75 million settlement last month, The National Law Journal reported.

The law firm faced charges of conspiracy, mail fraud, money laundering and obstruction of justice.

The government alleged that the firm and seven former partners made $251 million in attorney fees by paying secret and illegal kickbacks to lead plaintiffs.

Several former partners plead guilty, including co-founding partner Melvyn Weiss and William Lerach. Lerach is serving a prison sentence of 24 months. Weiss is scheduled to begin a sentence of 30 months next month.

Weiss is trying to get a share of Milberg's legal fees in many pending cases, citing a 2007 agreement, The Wall Street Journal's Law Blog reports (here).

The blog quotes a statement issued by Milberg executive committee member Sanford Dumain saying that, in the agreement, Weiss "gave up all management rights in the firm...[his] equity stake in the firm was reduced and he gave up any right to future payments under the then-existing partnership agreement, in return for payment to him of a reduced percentage of net revenues received by the firm from cases pending at the time.?

"Plea to tax count ends lawsuit kickback charges," Associated Press
Milberg Press Release

Full post as published by Legal Pad | LA on July 15, 2008 (boomark / email).