Overlawyered: Chronicling The High Cost Of Our Legal System

Update: Milberg Weiss indicted

Following a six-year investigation, the nation’s best-known plaintiff’s law firm is the subject of a 102-page federal indictment charging it paid millions in illegal kickbacks to a stable of docile “named plaintiffs” in its suits, and engaged in elaborate concealment and deception to keep the details of the scheme from coming to the attention of […]

Following a six-year investigation, the nation’s best-known plaintiff’s law firm is the subject of a 102-page federal indictment charging it paid millions in illegal kickbacks to a stable of docile “named plaintiffs” in its suits, and engaged in elaborate concealment and deception to keep the details of the scheme from coming to the attention of courts, class members and others. (“Top Law Firm Indicted in Alleged Scheme to Pay Plaintiffs for Class-Action Suits”, AP/FoxNews.com, May 19; Julie Creswell, “Milberg Weiss Is Charged With Bribery and Fraud”, New York Times, May 18; Josh Gerstein, “Criminal Charges Levied Against Big Tort Law Firm”, New York Sun, May 19).

Blog reaction: Stephen Bainbridge; Tom Kirkendall; Evan Schaeffer; Greg Mitchell; Jonathan B. Wilson.

Our extensive earlier coverage: Apr. 7, Nov. 18 and links from there.

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9 Comments

  • The accounts of all class action firms should be reviewed by the Criminal Division of the Justice Department for similar misconduct.

  • Legal opinion requested:

    Would it be possible for the defendants in all the corrupt suits MW is being indicted for to bring a class action suit against MW to recover the money they lost in legal fees, expenses, damages, etc., (plus, of course, accrued interest)? What a delightful outcome that would be, no?

    • By AFPV

  • What goes around comes around. In this particular case, it’s about time.

    • By BC

  • AFPV: If a conviction occurs, read this example:

    http://www.texaslegalmalpractice.com/about.htm

  • If the attorneys at MW did as alleged they did wrong. But the use of RICO to attack the entity, the partnership, seems to me a highly unsavory sort of prosecutorial proceeding. Prosecutorial discretion in such matters is almost unlimited and this ought to change.

  • “all class action firms should be reviewed by the Criminal Division of the Justice Department”…

    Yes, claus. They’re all guilty. Why bother to investigate them.

  • Wave: That is a jury question, is it not?

  • Blogs on Milberg indictment, cont’d

    More reactions and commentary: Peter Henning explores the possibly relevant distinction between fraud and dishonesty, especially as regards the offense of “deprivation of honest services”, and sketches out a possible defense for Milberg, namely to argu…

  • MW is just getting a taste of their own medicine. The bar associations have been silent what a suprise another example of why the legal profession can’t police itself

    • By John C