$75M Milberg Plea Deal Could Conclude This Week
A plea deal reportedly in the works between Milberg and federal prosecutors in Los Angeles over an alleged scheme by the law firm to pay some $11.3 million in secret kickbacks to lead plaintiffs in securities class actions could be concluded this week.
The firm is to pay a $75 million fine, representing a substantial portion of the $216 million prosecutors claim the scheme, which allegedly dated back to 1981, earned for participants, reports the Daily Journal (sub. req.). Including fines from senior partners already convicted and sentenced in the case, the total is $100 million. Because the firm is vicariously liable for their conduct, it would be difficult for Milberg successfully to defend the case, the article notes.
Milberg hopes to recoup some of the money in possible litigation against a spinoff firm, according to the legal publication.
“In 2004, half of the firm’s partners split and formed a San Diego law firm now known as Coughlin Stoia Geller Rudman & Robbins,” the Daily Journal writes. “The Milberg partnership is asking the Coughlin firm to make a contribution toward the $75 million fine, but it has declined, according to sources familiar with the matter.”
Both firms are renowned for their plaintiffs securities work.
Related coverage:
ABAJournal.com: “Milberg Law Firm Close to Plea Deal; $75M Under Discussion”
ABAJournal.com: “Mel Weiss Gets 2.5 Years for Client Kickback Scheme”
ABAJournal.com: “Lerach Ponders Planned Trip to Club Fed”
ABAJournal.com: “House Leader Seeks Probe of Plaintiffs Firms’ Class Action Kickbacks”
