Facts about Milberg Weiss indictment, partners' guilty pleas

Federal prosecutors indicted Milberg Weiss, a New York-based plaintiffs law firm and four of its named partners in 2006 on multiples charges in connection with what the government described as a criminal racketeering enterprise.

The firm specializes in bringing class-action lawsuits on behalf of plaintiffs alleging wrong-doing, usually against large corporations and one or more of their executives. Attorneys at firms like Milberg Weiss are variously called plaintiffs lawyers, trial lawyers and the tort bar.

Prosecutors charge that since 1979, Milberg Weiss has paid more than $11 million in kickbacks to individuals who agreed to act as lead plaintiffs in at least 150 cases that netted the firm more than $200 million in legal fees. Many defendants in the cases were Fortune 500 companies that paid huge settlements to avoid more costly court battles.

The government's investigation of Milberg Weiss was first reported in January 2002 by major mainstream media organizations, including The Wall Street Journal, The New York Times and others. Milberg Weiss's indictment was the first-ever of a law firm under federal anti-racketeering laws that were designed to prosecute organized crime syndicates.

Three of the firm's four partners named in the indictment, including David Bershad, Steven Schulman and William Lerach, have entered guilty pleas to various felonies related to the kickback scheme. The firm and its fourth named partner, Mel Weiss, have pleaded innocent and are scheduled for trials later this year.

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

Facts about Milberg Weiss indictment, partners' guilty pleas

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