Securities Class-Action Lawyer Headed To The Big House

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Securities class-action laywer Melvyn Weiss was sentenced today to 30 months in prison by a federal district judge in Los Angeles for his role in concealing illegal kickbacks to plaintiffs. Weiss was a partner at Milberg Weiss, which is now called Milberg in an attempt to remove the stain of its former partner's legal scandals. The firm was a huge player in securities class-action lawsuits, typically filed on behalf of shareholders against publicly traded companies whose share price had fallen.
This is a tough one. There's not much to be said in favor of the class-action plaintiffs bar in general, or securities class action lawyers in general. But, then again, federal prosecutors aren't much better. And the feds regularly do what Weiss was accused of doing--using 'incentive payments' to get witnesses to support their case. Here's how former Millberg Weiss partner William Lerach, who is serving a two-year sentence as a result of the same investigation, tells his side of the story to Portfolio.
Class-Action Lawyer Gets 30 Months in Prison [New York Times]

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