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October 30, 2007

Lerach Enters Guilty Plea in Class-Action Conspiracy

Filed under: Uncategorized — admin @ 3:48 pm

William S. Lerach, the California plaintiff’s attorney who helped turn class-action lawsuits into a lucrative trend, pleaded guilty yesterday to a conspiracy charge stemming from his role in a wide-ranging kickback scheme, the Washington Post reported today. Lerach acknowledged in a Los Angeles courtroom that he and his former partners at the Milberg Weiss firm hid payments to people who served as repeat plaintiffs in their class-action suits. According to federal prosecutors, the lawyers found people who held shares — often only a few — in companies that were accused of fraud. By getting those people to sign up as early plaintiffs in civil lawsuits against the companies, Lerach and his firm were able to exert greater control over the cases and reap additional fees. In all, the scheme infected more than 150 cases over the past two decades, bringing Lerach and his partners well over $200 million, according to court papers.

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