L ast week, U.S. District Judge Paul Barbadaro of New Hampshire approved a $464 million payout to three law firms in a shareholder class-action lawsuit against Tyco International, as part of a $3.2 billion settlement. One of the firms splitting those exorbitant fees is Milberg Weiss, four of whose principals pleaded guilty in 2007 to various felonies in a tawdry kickback scheme that federal prosecutors say started nearly 30 years ago.
Three kickback recipients have also pleaded guilty. In a 102-page indictment, the Justice Department said the scheme resulted in more than $200 million in tainted legal fees from at least 150 cases being paid to Milberg Weiss. The firm itself and one of its named partners, Mel Weiss, have denied all charges and face criminal trials later this year.
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