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Milberg Weiss Named Class Counsel in Securities Fraud Action

By A. Benjamin Spencer

Per BNA's Class Action Litigation Report (Volume 08 Number 21, November 9, 2007):

The U.S. District Court for the Eastern District of Pennsylvania Oct. 26 certified a class of investors in a securities fraud suit against Select Medical Corp. and its officials over alleged misrepresentations and omissions as to the impact of Medicare regulatory changes (Marsden v. Select Medical Corp., E.D. Pa., No. 04-cv-4020, 10/26/07).

Judge J. Curtis Joyner also appointed the law firm of Milberg Weiss Bershad & Schulman LLP as co-lead counsel, rejecting the defendants' argument that the recent criminal indictment of the firm makes it inadequate.

"[W]e agree with the number of other district courts that have declined to use the class certification stage to punish the firm for unproven allegations and have found the firm to meet the [Federal Rule of Civil Procedure] 23(a)(4) adequacy requirement," the court said (see In re Flag Telecom Holdings Ltd. Securities Litigation, S.D.N.Y., 9/4/07; In re Novastar Financial Securities Litigation, W.D. Mo., 2/8/07).

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Full post as published by Federal Civil Practice Bulletin on November 09, 2007 (boomark / email).