Clients: Lerach settled our case and never told us

That’s what three clients are alleging in court papers about Bill Lerach’s $10 million settlement in 2004 of a securities case called Yusty v. Tut Systems. Carlos Horacio Yusty, Andres Jaramillo, and Rodrigo Jaramillo say that by the time they got wind of the settlement two years later, all the proceeds had been distributed and […]

That’s what three clients are alleging in court papers about Bill Lerach’s $10 million settlement in 2004 of a securities case called Yusty v. Tut Systems. Carlos Horacio Yusty, Andres Jaramillo, and Rodrigo Jaramillo say that by the time they got wind of the settlement two years later, all the proceeds had been distributed and Lerach and partner Darren Robbins of Lerach Coughlin had cashed a $2.5 million fee. The trio’s lawyer, Bruce Murphy of Vero Beach, Fla., also says he was done out of a referral fee. The class-action sultan’s (and Robbins’s) response to the charges isn’t known yet. Roger Parloff of Fortune has a full report (Legal Pad, May 13).

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