Banking and finance roundup is a post from Overlawyered - Chronicling the high cost of our legal system

Liability roundup is a post from Overlawyered - Chronicling the high cost of our legal system

…The rise of the “confidential witness” can be traced to the Public Securities Litigation Reform Act and subsequent Supreme Court rulings, under which class-action lawyers are required to do more than just point out the obvious, that a stock price fell. They need to state “particularized facts” giving a strong inference that somebody in management, not just a faceless corporate entity, did something he or she knew was fraudulent.

To get over this hurdle, class-action lawyers frequently call upon nameless “confidential witnesses” who apparently are willing to speak with plaintiff lawyers but live in fear of their identities being revealed to anyone else.

Funny thing is, the testimony of these confidential witnesses on eventually reaching the light of day keeps not backing up the propositions the lawyers said it did. The newest embarrassment afflicts Robbins Geller, a successor law firm to Bill Lerach’s Coughlin Stoia. More: ABA Journal; City of Livonia Employees Retirement System v. Boeing.

“Judge Tosses Boeing Suit After ‘Confidential Witness’ Recants” is a post from Overlawyered - Chronicling the high cost of our legal system

…The authors explain in their Prologue that initially, Dillon had intended to co-author a book with Lerach, but that project got waylaid when it became clear that Lerach’s legal difficulties were serious. …

Lerach’s skill and his excesses emerged in his first successful case in San Diego, in which he represented a group of retirees against the Methodist Church. Lerach’s legal performance was by all accounts brilliant, and produced a great result for his clients. But, the authors note, “along with the good came the other things: the hubris, the taunting, the acrimony with the opposing side, the hyperpartisanship borne of the Manichean world view.” …

The authors also methodically show how so much of Lerach’s crusading activities depending on his firm’s corrupt system for procuring plaintiffs on whose behalf to bring the suit, as well as on the testimony of a corrupt expert witness.

Howard Sirota:

…Bill Lerach did not invent the criminal conspiracy; he joined it in progress. His “full cooperation” fails to name names and take numbers. … Lerach knows, but he isn’t telling, because the statute of limitations has not yet run for all of his crimes. …

Nevertheless, “Circle of Greed” is a must-read for lawyers and judges because even a “limited hang-out” by Bill Lerach reveals far more than he intended.

An excerpt from the book is at Politics Daily. LaCroix also interviews the authors (who note that while Lerach encouraged stories about a supposed conspiracy to get him, the Milberg prosecution “was managed by a dedicated civil servant in the Los Angeles U.S. attorney’s office named Richard Robinson who is not only a career prosecutor, but a Democrat.”) And San Diego public broadcasting outlet KPBS runs its Dillon-and-Lerach interview under the gag-worthy headline, “The Story Of Bill Lerach’s Fighting For Consumers.”

More: Seth Hettena, Voice of San Diego, profile and interview.

More on “Circle of Greed” is a post from Overlawyered - Chronicling the high cost of our legal system

The Milberg Weiss Four after prison is a post from Overlawyered - Chronicling the high cost of our legal system

October 10 roundup is a post from Overlawyered - Chronicling the high cost of our legal system

Target of Milberg suit sues over Torkelsen testimony is a post from Overlawyered - Chronicling the high cost of our legal system

Milberg hires judge who ruled in its favor is a post from Overlawyered - Chronicling the high cost of our legal system

According to correspondence from New York securities lawyer (and longtime Weiss critic) Howard Sirota, however, there might be to the story than that:

I wouldn’t be so quick to jump to the conclusion that Mel Weiss [fouled] up investing with Madoff.

Weiss’ wife and son Stephen A. Weiss invested with Madoff, as did [Milberg Weiss partners] David Bershad and Pat Hynes.

In addition, convicted serial Milberg plaintiff Howard Vogel invested with Madoff.

Buchbinder Tunick, Milberg’s accountants and ironically Milberg’s principal forensic accounting experts, appear on the list, although the entries may be clients of the Buchbinder firm.

Class action firms Wolf Popper and Wolf Haldenstein also appear.

Sirota believes that other persons and entities on the Madoff victims list have also served as lead plaintiffs in securities litigation or as plaintiffs in other litigation handled by class-action firms. All of which could be mere coincidence, or could suggest that either Madoff himself or others in his circle might have played some role in funneling lead plaintiffs to the class-action bar. (Particularly in the “race to the courthouse” era that preceded the Private Securities Litigation Reform Act, having a stable of cooperative repeat plaintiffs was vital to the success of many plaintiff’s firms.)

One way to check this thesis, Sirota suggests, would be to check the names on the Madoff victims list against those on the list of plaintiffs maintained by the Stanford Law School securities class action clearinghouse to see whether there are any other noteworthy matches and if so whether they follow any particular pattern. He also asks whether some of the law firms that have been organizing task forces to recruit and represent plaintiffs in the Madoff scandals — they include the Milberg firm and Wolf Haldenstein — have adequately disclosed to potential clients in their literature that their firms’ own names figure on the Madoff victims list. More: Gary Weiss, Larry Ribstein.

Further: Yet more views. And in comments, a visitor says Wolf Haldenstein is on the list because clients of the firm invested with Madoff, not because the firm itself did.

Bernard Madoff and Milberg Weiss, cont’d is a post from Overlawyered - Chronicling the high cost of our legal system

Weiss is in jail now on unrelated charges, of course, but he might make a fun person to name as lead plaintiff in a suit against Madoff.

Mel Weiss invested with Madoff is a post from Overlawyered - Chronicling the high cost of our legal system