Ten warning signs about Milberg Weiss

By Mark Tapscott

Some but not all of the federal judges hearing securities class-action cases and Securities & Exchange Commission officials attended annual conferences of the Institute for Law and Economic Policy (ILEP) with an awareness that it was controlled by lawyers from Milberg Weiss and Lerach Coughlin. Here are 10 warning signs over the years that should have given these judges and officials reason to pause:

1992-1995

William Lerach and Milberg Weiss file a new securities class action lawsuit every 4.2 days.

1995

Congress passes Private Securities Law Reform Act (PSLRA) and singles out Milberg Weiss and Lerach as the biggest abusers of the judicial process, using "a stable of professional plaintiffs."

1997

Federal judge Jerry Buchmeyer refuses to appoint Milberg Weiss as lead plaintiffs counsel in Cellstar case, citing the congressional report on PSLRA.

1999

Milberg Weiss is found guilty of filing frivolous suit and pays $50 million settlement with Lexecon.

2002

A Florida judge throws out a lucrative settlement by Milberg Weiss with Florida Progress, saying the settlement left shareholders out and comparing the law firm to "squeegee boys" who throw dirty water on car windshields and then demand payment for cleaning them.

2002

State and federal authorities confirm they are investigating whether Milberg Weiss and another firm paid a Philadelphia official consulting fees in return for pieces of the city's legal business.

2002

Federal officials confirm a grand jury investigation into allegations that Milberg Weiss is at the center of a multi-million dollar scheme to pay kickbacks for favorable treatment by lead plaintiffs.

2003

Milberg Weiss is forced to withdraw a suit against Titan Wheel amid allegations the firm used the suit as a tactic on behalf of a labor union. The firm agreed never to sue Titan again.

2004

William Lerach leaves Milberg Weiss in a feud widely reported to be a result of disagreements over how to respond to federal investigation. Dozens of other lawyers, including several former prosecutors, also leave firm.

2005

A Kansas City fund manager sues Milberg Weiss for misleading him regarding a suit against another company. A state court finds against Milberg Weiss, but a federal court later throws the case out on jurisdictional grounds.

Mark Tapscott is the editorial page editor of The Washington Examiner.

Ten warning signs about Milberg Weiss

1992-1995

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2002

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