Posts Tagged ‘Milberg Weiss’

Scruggs indictment IX

Yes, it seems there were wiretaps. Defendants will be seeing evidence from the prosecution momentarily which might (or might not) be the trigger for further flipping and early plea deals, if such there will be.

There is enormous curiosity (e.g.) about P.L. Blake, to whom Scruggs says he paid $10 million (and tens of millions more in future payments) for vaguely described intelligence services aimed at swaying political influentials during the tobacco caper. Per a 1997 account posted at Y’All Politics, “Blake pleaded ‘no contest’ in 1988 to a federal charge that he conspired to bribe officials of the now-defunct Mississippi Bank to secure favorable loan terms.” The same article, citing reporting in the Jackson Clarion-Ledger, reports that Blake was in close phone contact between 1994 and 1996 with eventually-disgraced state Auditor Steve Patterson, who after leaving office went into partnership with Timothy Balducci and is one of the five indicted in the current Scruggs affair. Per AP, “Patterson was a banker at Mississippi Bank before his 1984-1987 tenure as head of the Mississippi Democratic Party.”

David Rossmiller, as so often, is out front with a report filling in background on two other controversies involving Blake. One arose from a venture into the grain storage business which landed him in a Texas dispute in which his attorney was none other than Fred Thompson, later a Tennessee senator and presidential candidate. The other arose from his cordial dealings with a former chief of staff to Sen. Trent Lott (R-Mississippi).

Harper’s blogger Scott Horton has now published his take, as is his wont heavily dependent on hush-hush (but no doubt wholly trustworthy) confidential sources who float all sorts of theories about scoundrelly doings by the highly placed. He winds up with a theory that would pull Sen. Lott into it (though with no allegation of criminality) by way of the Acker contempt matter, as distinct from either the Balducci/Lackey bribery attempt or, say, the Paul Minor affair. Of Horton’s many anonymously sourced speculations, the one that caught my eye was tucked into a footnote: “A law enforcement official I interviewed, who for professional reasons asked to remain anonymous, told me that Scruggs’s junior partner Sidney Backstrom might take the same road as Balducci.” Now that is news a rumor (more). (Update Tues. evening: Backstrom’s attorney Frank Trapp flatly denies that anything of the sort is in the works: Patsy R. Brumfield, “Backstrom firm on innocence, his attorney says”, Northeast Mississippi Daily Journal, Dec. 12.)

This is probably a good place to apprise readers who aren’t aware of it that 25-odd years ago, while first gaining a footing in the policy world, I worked briefly on Capitol Hill drafting research papers for a committee then headed by Mr. Lott. We only talked a couple of times, I had never set foot in the state of Mississippi at the time, and I’m pretty sure he wouldn’t recognize me on the street, but if you’re a conspiracy theorist about such matters, there you have it.

At Y’All Politics, commenter “lawdoctor1960” has some speculation as to why the remarkable deposition of Scruggs in the Luckey case didn’t get more media or political attention at the time.

Welcome Andrew Sullivan, David Rossmiller, Y’All Politics readers.

Attorney Tim Balducci’s role as deputized lawyer for the state of Mississippi in the MCI and Zyprexa cases is drawing public scrutiny, and may result in pressure for reform of AG outside contracting.

We’ve started a new “Scandals” category for readers who want quick access to coverage of the Mississippi mess, also stocked with some earlier links to coverage of such earlier blow-ups as Milberg Weiss/Lerach, Kentucky fen-phen, the Paul Minor affair, etc. For those who are following Scruggs posts in sequence, be aware that yesterday’s first and second posts fell outside the numbering scheme.

December 5 roundup

  • Fear of “retribution” and “legal action” among reasons docs don’t report hazardous colleagues and conditions [WaPo on new Annals of Internal Medicine study]
  • Judge rips Milberg for high Chiron fee proposal, questions Skadden’s conflict [The Recorder]
  • Felony murder rule is an American exception with results that can be hard to defend [Liptak, NYT]
  • UK: “Man broke girlfriend’s leg in damages fraud” [Times Online]
  • Often driven by defensive medicine, CAT scans may pose their own risks to patients who undergo them [Newsday on NEJM study]
  • Commentator is glad post offices are lawyering up their Operation Santa gift programs [McDonough, CalLaw LegalPad; earlier; possibly related]
  • Quebec judge nixes suit by Concordia University mass murderer against former colleagues [Canadian Press]
  • Update on Kennewick man and Indian-remains legislation [WashTimes; earlier]
  • Magic of compound interest? Uncollected 1977 award for victim of Evel Knievel attack said to have mounted by now to $100 million [AP/Yahoo]
  • School discipline now a heavily lawyer-driven affair [Charleston Post & Courier courtesy Common Good]
  • Complaint: Cleveland housing authority should have done more renovations to accommodate extremely obese tenant [four years ago on Overlawyered]

“Eye-popping” fee request in Tyco securities case

The plaintiff’s lawyers — which include Milberg Weiss as well as Grant & Eisenhofer and Schiffrin Barroway — are asking a court to approve $460 million in fees, plus about $29 million in expenses. They say they spent 488,000 hours on the litigation, and you’d better not express any skepticism about that figure unless you were in the room watching or something. (WSJ law blog, Nov. 1).

Welcome New York Times readers

Ted has already mentioned today’s front-pager on Milberg Weiss campaign donations, which is kind enough to quote me. I was particularly glad that reporter Mike McIntire took note of some of Milberg’s connections on Capitol Hill, which tend to get less attention than its Presidential campaign donations:

Beyond campaign contributions, Milberg Weiss became deeply ingrained in the financial firmament of the Democratic Party in other ways. Members of the firm gave $500,000 toward construction of a new Democratic National Committee headquarters, and some became partners in a private investment venture with several prominent Democrats. They included former Senator Robert G. Torricelli of New Jersey, who is a fund-raiser for Mrs. Clinton, and Leonard Barrack, a Philadelphia trial lawyer who was once the national fund-raising chairman for the Democratic Party.

Along the way, as Milberg Weiss’s brass-knuckles legal strategy made it a target for Republicans advocating limits on class action suits, it usually could count on Democrats in Washington to protect its interests. After federal prosecutors indicted the firm in May 2006, four Democratic congressmen issued a joint statement, posted on Milberg Weiss’s Web site, accusing the Bush administration of persecuting lawyers who take on big businesses.

The statement, signed by Representatives Gary L. Ackerman, Carolyn McCarthy and Charles B. Rangel, all of New York, and Robert Wexler of Florida, contained several passages that appear to be lifted directly from a “class action press kit” distributed by a national trial lawyers group. All but Mr. Wexler have received campaign contributions from Milberg Weiss partners.

(Mike McIntire, “Accused Law Firm Continues Giving To Democrats”, New York Times, Oct. 18).

MSM finally notices: Milberg Weiss Continues Giving to Democrats

The New York Times finally gets around to exploring the ties between indicted Milberg Weiss, convicted Bill Lerach, and John Edwards and the Clintons (as well as the four Democrat representatives who parroted statements about Milberg’s supposed innocence). Walter is quoted. (Mike McIntre, “Accused Law Firm Continues Giving to Democrats”, Oct. 18). Regular readers of Overlawyered and Point of Law knew all this months ago. Useful comparison: MSM mentions of Enron ties to the Republican party compared to the much-more culpable Milberg Weiss much-more extensive ties to the Democrats—especially given the political favors done for the parasitical law firm that have allowed it to extract billions of dollars from investors.

October 3 roundup

  • Yet another Apple suit, this time on behalf of user who wishes iPod and iTunes were more compatible with other song vendors and devices [Miami Herald/ILR]

  • Fairview Heights, Ill. alderman says town was “deceived” into serving as lead plaintiff in class action against Orbitz, Priceline, Expedia and other online travel firms [Madison County Record]; More: here and here.

  • “Evasive”, “bad faith”: federal judge slams health insurance lawyers for stalling suit by docs [Phila. Inquirer; Plus: their side @ Law.com]

  • Plastic water guns draw ire of politicos in Albany, N.Y. [Times-Union via Nobody’s Business]

  • High lawyers’ fees said to be pricing middle class Canadians out of the justice system, but it must be said the numbers cited sound pretty low by U.S. standards [Maclean’s]

  • Flickr makes it easy to grab and reuse strangers’ photos, and legal sorrows ensue [NY Times]

  • Jack Thompson tries to get federal judge Jordan removed from hearing one of his lawsuits against the Florida Bar [GamePolitics.com; & yet more]

  • New at Point of Law: trial lawyers deem “slanderous” ads featuring fictional law firm of Sooem, Settle & Kashin; Business Week cover story on wage/hour suits; John Edwards comes out again for “certificate of merit” med-mal reform; replace your old kitchen cabinets and get lead paint companies to pay; and much more;

  • Some New York lawmakers think secondhand smoke is just as bad for you as actually being a smoker [Siegel via Sullum; more on recent smoking bans, complete with culturally-sensitive hookah exception]

  • “Disability Math” video explores paradox of how employment fell among handicapped after enactment of the ADA [Dubner, Freakonomics; more (now with more direct Freakonomics link)]

  • Class-action lawyers sue over kids’ Pokémon card trading craze, claiming it’s illegal gambling [Eight years ago on Overlawyered; Milberg Weiss angle here]

Feds indict Mel Weiss

Critics long derided the federal investigation of Milberg Weiss as slow to produce results, but things are moving along at a brisk clip now, with an indictment charging the nation’s best-known class-action securities lawyer with conspiracy, racketeering, obstruction of justice and making false statements, just after his best-known former colleague at the firm, William Lerach, agreed to cop a plea deal. “In addition, Steven G. Schulman, a former senior partner at the Milberg Weiss firm, agreed to plead guilty to a racketeering conspiracy charge, prosecutors said.” (AP/Business Week; Jurist “Paper Chase”; ABA Journal first and second stories. Documents, all PDF: Milberg Weiss superseding indictment; Schulman charge, plea, press release).

The Sirota & Sirota law blog, an “unfriendly competitor” of Milberg Weiss in the class-action biz, has this post from June offering some perspective on the ongoing investigation.

September 18 roundup

Lerach retires; nearing a plea deal?

Law.com reports in its summary:

Renowned plaintiffs attorney William Lerach, lead partner at Lerach Coughlin, announced Tuesday he’s stepping down from the firm he started when he split off the West Coast offices of what is now Milberg Weiss. Lerach said he’s planning to take some time off. That could include going to prison, or at least the U.S. Attorney’s Office. Lerach is said to be nearing a deal with federal prosecutors related to legally questionable payments Milberg Weiss made to its lead plaintiffs and a former expert witness.

The WSJ Law Blog similarly reports that “Lerach has not been charged, but he is in advanced talks with prosecutors on a plea deal that could be announced in September and involve serving prison time, according to two people familiar with the investigation.” It also has Lerach’s departure memo to colleagues at the law firm that will now be known as Coughlin Stoia Geller Rudman & Robbins (cross-posted from Point of Law).

What took so long?

I was wondering when former class members represented by Milberg Weiss would take a speculative flyer to convince a court that Federal Rule of Civil Procedure 60(b) does not preclude relief and sue the law firm over its kickback scandal and Peter Lattman reports that that has happened. Alas for schadenfreude, I am utterly unpersuaded by the complaint, which makes no attempt to jump that procedural hurdle: Fed. R. Civ. Proc. 60(b) prohibits reopening even judgments procured by fraud more than a year after they close, and I’m unaware of courts permitting end-arounds of the rule through collateral lawsuits. But perhaps the plaintiffs have an undisclosed legal trick up their sleeve for when the motion to dismiss comes.

Lattman’s blog posts on Milberg Weiss always attract an interesting flood of anonymous comments defending the firm, and this one is no different: one such comment suggests, perhaps libelously, that the suing law firm has its own history of kickbacks.