William Lerach

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William Shannon Lerach (Bill Lerach) (b. 1946, Ohio River Valley,[1] Midwestern United States) is an American lawyer who specialized in class action lawsuits. He earned his undergraduate and law degrees from the University of Pittsburgh. He has been a major financial donor to Democratic Party organizations at the state and national level.[2][3] In 1993, Lerach bragged to Forbes magazine that "I have the greatest practice of law in the world, I have no clients."[4]

Lerach, formerly a partner in the indicted law firm Milberg Weiss,[5][6][7] left Milberg Weiss in 2004 to form the San Diego, California based firm, Lerach Coughlin Stoia & Robbins LLP. After a merge with Geller Rudman LLP, the firm became Lerach Coughlin Stoia Geller Rudman & Robbins LLP.[5][8]

According to a June 2007 statement in which he alluded to the ongoing Milberg Weiss investigation,[9][10][11] Lerach was considering retirement. As of 31 August 2007,[12][13][14] Lerach is no longer a member of the San Diego firm, which is now known as Coughlin Stoia Geller Rudman & Robbins LLP.[15]

On Monday February 11, 2008, Lerach was sentenced to two years in federal prison,[4] two years' probation, fined $250,000, and ordered to complete 1,000 hours of community service because of his involvement in a lawsuit kickback scheme.[16] His license to practice law had been suspended in December, with disbarment expected.[17]

Lerach's former Milberg Weiss partner Melvyn Weiss was similarly sentenced in early June 2008.[18]

[edit] References

  1. ^ Reynolds Holding, William Carlsen, et al (15 November 1999). Phantom Riches. San Francisco Chronicle.
  2. ^ Elkind, Peter (2000-09-04), “The King of Pain Is Hurting”, Fortune, <http://money.cnn.com/magazines/fortune/fortune_archive/2000/09/04/286801/index.htm> 
  3. ^ Bruce V. Bigelow (19 September 2007). Prison sentence part of lawyer's plea deal. The San Diego Union-Tribune. “Lerach also was a prominent friend to former President Bill Clinton and was an influential fundraiser for the Democratic Party. He contributed $1.28 million to federal campaigns since 1993 and has been a strong supporter of Democratic candidates for governor and other state offices.”
  4. ^ a b Mark Tapscott. Bill Lerach: A Robin Hood who lined his own pockets. The Washington Examiner. “Following guilty pleadings by Berschad and Schulman, Lerach pleaded guilty in September 2007 to felony charges of conspiracy to obstruct justice and making false statements to federal judges. He agreed to make nearly $8 million in restitution to the government. He was sentenced Feb. 11 to a two-year federal prison term.”
  5. ^ a b Justin Scheck (16 August 2005). Lerach Hunkers Down After Indictment. The National Law Journal.
  6. ^ Peter Elkind (November 3, 2006). The fall of America's meanest law firm: Milberg Weiss, the lawsuit factory that took corporations for $45 billion, is in the feds' cross hairs. Fortune. “…Milberg Weiss and the two outsized personalities who ruled the place, Mel Weiss and Bill Lerach… indicted for allegedly paying three plaintiffs $11.4 million in illegal kickbacks in about 180 cases spanning 25 years - and then repeatedly lying about it to the courts.”
  7. ^ Justin Scheck (1 June 2007). Milberg Partners Talk Pleas With Prosecutors. The National Law Journal. “When the probe began in 1999, it was focused on Lerach.”
  8. ^ Lerach Coughlin Stoia Geller Rudman & Robbins LLP website. (Note: the Lerach bio has been removed from the law firm website. As of the end of August 2007, the firm is known as Coughlin Stoia Geller Rudman & Robbins.)
  9. ^ Julie Creswell (1 June 2007). Top Lawyer, Under Fire, May Depart. The New York Times.
  10. ^ Molly Selvin (1 June 2007). Class-action lawyer could face charges. Los Angeles Times.
  11. ^ Greg Farrell (9 July 2007). Plea may aid case against law partners. USA TODAY. “Bershad's admission of guilt is expected to help prosecutors build criminal cases against the two most prominent plaintiffs' attorneys associated with the firm, Melvyn Weiss and Bill Lerach. According to prosecutors, Milberg Weiss violated rules by paying off a small group of individuals who served as "lead plaintiffs" in many of the firm's cases. Two of those serial plaintiffs have acknowledged that they participated in the kickback scheme, according to court documents.”
  12. ^ Jenny Anderson (29 August 2007). Lawyer Quits Firm to Focus on Inquiry. The New York Times. “Rumors that Mr. Lerach would leave had been swirling for months amid speculation that he would resign in exchange for the firm’s not being indicted… According to the indictment, in the early stages of the scheme, which lasted from the 1970s through 2005, Milberg Weiss partners provided cash to pay the kickbacks since it is illegal for a plaintiff to receive any portion of the legal fees, which could be viewed as an incentive to settle rather than act in the best interest of the class. The firm would later award those partners bonus payments equal to the amounts they had paid in.”
  13. ^ Carrie Johnson (29 August 2007). Lerach to Leave Law Firm As He Tries to End Probe. The Washington Post.
  14. ^ Mark Lachter (31 August 2007). Snag in Lerach plea deal. LA Biz Observed. “Several defense attorneys said they did not know which charges Lerach would plead to or other details of the proposed plea deal, except that it likely includes a monetary penalty and prison time. A few lawyers familiar with the situation said Lerach told close friends that he does not believe he's done anything wrong. Nevertheless, they said, he's resigned himself to serving a year or more in prison and has directed his attorneys to negotiate such terms with prosecutors.”
  15. ^ Coughlin Stoia Geller Rudman & Robbins LLP website.
  16. ^ Associated Press (February 12, 2008). Lawyer William Lerach sentenced to 2 years in class-action kickback scheme. Chicago Tribune. “I pleaded guilty in this case because I was guilty," Lerach said before sentencing. "It was, as they say, felony stupid.”
  17. ^ Carrie Johnson (February 12, 2008). Lerach Gets Two Years In Prison for Kickbacks. The Washington Post. “In late December, authorities suspended Lerach's license to practice law, and legal experts said he is almost certain to be disbarred.”
  18. ^ Edvard Pettersson (June 2, 2008). Weiss Sentenced to 2 1/2 Years for Kickback Scheme (Update1). Bloomberg L.P.. “Weiss, 72, must also forfeit $9.75 million and pay a fine of $250,000. He pleaded guilty April 2 to racketeering conspiracy, admitting he helped secretly pay a stable of plaintiffs to file suits from 1979 through 2005. By using them to sue first, the firm was more likely to lead cases and reap larger fees. ... Lerach is serving a two-year prison term after pleading guilty to conspiracy last year. Weiss faced as much as 40 years in prison if convicted at trial.”