Ex-Milberg Partner May Cooperate
A former partner at indicted law firm Milberg Weiss & Bershad would provide evidence for the prosecution if he works out a plea deal.
Lawyer David Bershad is accused of paying lead plaintiffs in securities class-action suits with money stashed in a safe in his office. A deal could produce a “domino effect” in the case, possibly prompting more pleas, a criminal lawyer involved in the case told the Wall Street Journal (sub. req.).
So far, the only other lawyer at the law firm who has been indicted is Steven Schulman, who has since retired.
Two firm leaders, Melvyn Weiss and Bill Lerach, have not been charged. But Lerach, who left Milberg Weiss to found a San Diego law firm, has also been talking to the government, the newspaper says.
A lawyer for Weiss stressed that he has not been charged with any criminal conduct and he intends to continue practicing law. Lerach did not provide a comment to the newspaper.