Separate articles summarize news reports and the criminal complaint involving the federal indictment of class action law firm Milberg Weiss, Bershad & Schulman and two of its partners for allegedly paying people $11 million in kickbacks to serve as class representatives in shareholder lawsuits. According to Friday’s edition of the San Jose Mercury news, “Prosecutors allege that the secret kickback arrangement often allowed the firm to be among the first to file lawsuits against major corporations on behalf of shareholders. The indictment alleges that the lawsuits generated $216 million in attorneys’ fees.” The criminal indictment includes charges of money laundering, filing false tax returns, racketeering and conspiracy.
The San Jose Mercury News reported Friday that bail had been set for class action plaintiff lawyer David J. Bershad at $3.5 million, and for his partner Steven G. Schulman at $2 million. It was reportedly their first appearance in federal court; they are scheduled to return to court on Monday to enter pleas. The Associated Press report, entitled “Million Dollars Bail Set for Lawyers Indicted in Kickback Case,” may be found in the July 14, 2006 edition of the San Jose Mercury News.