Noted Securities Class Action Lawyer Resigns From Law Firm Reportedly In Exchange For Government Agreement not to Indict Law Firm
Jenny Anderson of The New York Times reports that noted class action plaintiff lawyer William S. Lerach is leaving his law firm in order to focus on the criminal allegations connected with the federal indictment of Milberg Weiss Bershad & Schulman, where he once worked. We have previously reported on the criminal indictment of Milberg Weiss and two of its named partners, David Bershad and Steven Schulman, alleging illegal payments of more than $11 million to individuals who served as class representatives in class actions filed by Milberg Weiss. Bershad pleaded guilty to conspiracy last July, and has agreed to return almost $8 million and to cooperate with prosecutors.
While Lerach has not been indicted, he reportedly is leaving the practice of law “to focus his attention on fighting the allegations against him.” Rumors have been spreading for months that Lerach would be indicted charges that he, too, made such illegal payments. Ms. Anderson’s article quotes Lerach as stating that “These allegations have proven to be personally time-consuming, and I have decided to focus single-mindedly on putting the matter behind me once and for all.”
Ms. Anderson’s article, entitled “Lawyer Quits Firm to Focus on Inquiry,” may be found in Section C of the August 29, 2007 edition of the New York Times.