Suit Claims Ex-Milberg Lawyers Lied About Expert Pay in Casino Case
A racketeeting suit claims former lawyers from the Milberg law firm colluded with an expert witness in an investor suit against the troubled Stratosphere casino in Las Vegas.
The federal suit filed by the Stratosphere’s Minnesota partner, Lakes Entertainment, challenges an $18 million settlement in the case reached nine years ago, the Minneapolis Star Tribune reports. The suit seeks to recover the settlement money and also asks for triple damages.
The suit accuses three former Milberg lawyers of lying about compensation paid to an expert witness on damages, according to the Star Tribune. It says the lawyers maintained that witness John Torkelsen was paid $390 an hour when he was actually being paid on a contingency basis.
One of the lawyer defendants is William Lerach, who was sentenced to two years in prison for his role in a scheme to pay kickbacks to lead plaintiffs in securities class actions. The National Law Journal identifies the other two lawyers named as Kevin Roddy, now with Wilentz, Goldman & Spitzer in Woodbridge, N.J., and Spencer Burkholz, with Coughlin Stoia, Geller Rudman & Robbins in San Diego.
The suit says Roddy defended 1997 deposition testimony by Torkelsen about investor damages and Burkholz submitted a court declaration supporting an alleged false reimbursement claim by Torkelsen, according to the NLJ account.
Roddy and Burkholz did not comment on the suit to the National Law Journal.
Torkelson pleaded guilty last year to a federal perjury charge for lying about his compensation in several cases, including the Stratosphere class action.
