I’m covering a judge’s $100 million ruling against the coffee chain at Point of Law.
Archive for March, 2008
Florida high court sanctions Jack Thompson
It “won’t accept any more filings” from the embattled anti-videogame attorney “without the signature of another Florida Bar member.” (DBR). Relatedly, Above the Law is retiring Thompson to a Hall of Fame in which he will be ineligible for further naming as ATL’s Lawyer of the Day, because it just isn’t fair to other lawyers who do outlandish things to let Thompson win so often.
March 21 roundup
Updates galore:
- Bogus Michael Boyle v. Ford verdict tossed by appellate court. [Law.com]
- More on the Patent Troll Tracker lawsuit. [Law.com]
- Federal district court rejects challenge to Michigan Proposition 2 ban on racial set-asides after far too much litigation over the voter initiative. [Open Market Blog]
- Criminal charges reinstated against Empire State Building parachutist. [Turkewitz]
- In the other Mississippi judicial bribery scandal (Oct. 12, Sep. 8, etc.), two judges report to federal prison. [Law.com/AP]
- Hawaii tort reform bill dead after all. [Torts Prof]
Quoted in today’s Times
I’m quoted on the Melvyn Weiss guilty plea, and on the way certain crooks have successfully been passing themselves off as white knights in press coverage of shareholder and consumer litigation. (Jonathan D. Glater, “High-Profile Trial Lawyer Agrees to Guilty Plea”, New York Times, Mar. 21). For more on Weiss’s plea, see yesterday’s post.
More Weiss reactions include a NY Sun editorial:
Mr. Weiss and his partners made their careers, and their fortunes, casting those they were suing — insurance and tobacco executives, Swiss bankers — as crooks. Some of them may have been, though many were not. Now these lawyers are admitting to the court that they are crooks, too. … Congress has already acted to reform the class-action system from the “first-to-file” system that engendered the Milberg Weiss abuses. But until Congress and the state legislatures act further to reform the civil litigation system, the costs of Weiss’s career will be borne by all of us.
Interviewed by the L.A. Times, Columbia lawprof Jack Coffee (who’s done a lot of work for Milberg, right?) thinks Mel Weiss got a “uniquely good deal” in the plea. Similarly: Greenfield.
Suing teachers in Canada
“A British Columbia father has sued his son’s Grade 2 Montessori teacher claiming that she ‘purposely and maliciously worked to damage the self-esteem’ of his son over such things as failing to encourage the child’s spelling, not sending home a daily homework list and, in one case, displaying an unfinished poem in the school hallway. …Similar issues will arise in a Montreal courtroom next Tuesday, when a teacher at Westmount’s prestigious Roslyn School will face the first of two lawsuits by aggrieved parents.” Canada’s National Post is kind enough to quote me on the U.S.-style trend (Zosia Bielski, “The new golden rule”, National Post, Mar. 20).
Mel Weiss to plead guilty
WSJ: “Melvyn Weiss, the onetime powerhouse shareholders lawyer, has struck a deal to agree to plead guilty in a case alleging improper kickbacks, according to a person familiar with the investigation.” We’ve been covering the Milberg Weiss scandals on this site since they broke; my WSJ op-ed “Inside Milberg’s Credenza” is here. More:
According to a statement released Thursday by the defense lawyer, Benjamin Brafman, Mr. Weiss will plead guilty to participating in a criminal conspiracy to pay a share of legal fees to plaintiffs in shareholder suits brought by Milberg Weiss. Such kickbacks are improper because they give plaintiffs representing a class of all shareholders an incentive to accept a deal that might not be best for the class.
Under the terms of the plea agreement, Mr. Weiss faces a sentence of up to 33 months in prison. Mr. Weiss has also agreed to pay a total of $10 million in fines and penalties, according to the statement.
(Jonathan Glater, NYT). More at WSJ law blog (Weiss: “I deeply regret my conduct”) including a copy of the plea agreement and government statement, both PDF.
The firm of Milberg Weiss, formerly Milberg Weiss Bershad & Schulman LLP, famous for shedding indicted names as an ecdysiast sheds clothes on stage, is now down to plain old Milberg LLP, and will presumably be able to stop there, the Milberg after whom it was named being nearly twenty years deceased. (Bumped 1:50 p.m.)
And: World-class chutzpah morsel from the NYLJ: “If Mr. Weiss had proceeded to trial, his defense was expected to argue that he was so preoccupied with humanitarian and charity work during the charged period that Messrs. Bershad and Schulman had been able to carry on the kickback scheme without his knowledge.” In the plea agreement, Weiss stipulates that he was in effective control of the firm and its operations and party to the conspiracy, and agrees to forfeit a sum of nearly $10 million which he acknowledges is less than what he gained from the illegal conduct.
Plus: Portfolio:
Weiss made staggering profits from the kickback scheme. According to the indictment, his share of the law firms profits from 1983 to 2005 amounted to more than $209 million. …
Sanford Dumain, a member of the Milberg L.L.P. executive committee, said, “Having previously believed former leaders’ assurances of their innocence, the firm is now seeking to find a fair and appropriate resolution of remaining issues so that we can continue to work on behalf of injured investors and consumers.”
The firm added in a statement: “Milberg L.L.P. apologizes to all judges, lawyers, clients, and class members, who deserve full and complete adherence to all legal and ethical norms.”
Portfolio also reports that the Milberg firm is intent on obtaining a deferred prosecution agreement: “If the firm pleaded guilty to a federal criminal offense, it is highly unlikely that a judge would approve the law firm to serve as lead counsel for the plaintiff in a class action.” More on the firm’s renaming: Lat. And Carter Wood at NAM notes the silly encomia with which Weiss’s lawyer is still attempting to gild his crooked client.
New at Point of Law
If you’re not keeping up with our sister site, you’re missing out on stories about how expert evidence standards help plaintiffs too (and more); animal rights more voguish at many law schools than those dull old humans; Ohio Supreme Court commended; implications of recent plunge in carpal tunnel cases; 93% enrollment in Vioxx settlement; attorney faces criminal charges after his clients quit their nursing jobs; extensive coverage of Gov. Spitzer’s downfall; more trouble for Florida lawyer accused of bribing defendant’s adjuster to obtain settlement target numbers; ballot measure would abolish employment at will in Colorado; judicial seminars by the securities class action bar; and much more.
N.M. high court to review insurance-installment class settlement
New Mexico in recent years has been the scene of a little cottage industry in class-action settlements over insurance companies’ allegedly inadequate disclosure of charges on installment payments. Settlements often involve pledges to inform consumers more fully, modest coupons, and impressively large legal fees to the circle of law firms that file the cases. According to the U.S. Chamber of Commerce, nearly every large insurer selling life and disability coverage has been hit with a New Mexico class action in the past decade. Now, for the first time, the state high court is set to review one such settlement, in a case against First Colony/Genworth. The “settlements have not been free of controversy, with even some policyholder-plaintiffs describing the lawsuits as frivolous and the attorney fees as excessive”; cumulatively they have brought the class counsel more than $41 million in fees. (Thomas J. Cole, “New Mexico’s Supreme Court to Review Award of $6.5 Million in Attorney Fees in Suits Against Insurer”, Albuquerque Journal, Feb. 14 courtesy NM Legal Reform; earlier).
Update: English-only cheesesteak ordering
Not unlawful in Philadelphia after all (“Ruling: English-only sign at cheesesteak shop not discriminatory”, AP/Examiner, Mar. 19; Inquirer, Michelle Malkin; earlier).