Wednesday, October 10, 2007
Steven Schulman, former partner of Milberg Weiss, pleaded guilty yesterday to a racketeering conspiracy charge. Here's an excerpt from the New York Times article:
Mr. Schulman ... admitted in federal court to being part of a scheme in which the firm, known for its class-action lawsuits against companies, gave secret kickbacks to individuals who remained on call to act as lead plaintiffs. This allowed the firm to file suit faster than its competitors and to gain a lead position that generally resulted in higher fees.
... Mr. Schulman is also cooperating with prosecutors and agreed to forfeit $1.85 million in profit, pay a $250,000 fine and accept a prison sentence. Though his plea could bring a sentence of up to 20 years, court filings suggest 27 to 33 months.