New Allegations Surface Regarding Indicted Class Action Law Firm and Lawyer

May 27, 2006 | By: Michael J. Hassen

Class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and two of the firm’s top partners,David Bershad and Steven Schulman, were indicted in mid-May 2006 for paying millions of dollars in kickbacks to clients to serve as plaintiffs. Lynnley Browning of the New York Times reports that one of the lead plaintiffs in the class action against accounting firm KPMG claims “that he was offered a financial incentive to serve as plaintiff.”

Settlements in class action cases require court approval, and a proposed $153 million settlement in the KPMG action was to be heard by the federal judge on May 26, 2006. For more information, please see Lynnley Browning’s article, “Plaintiff Says Incentives Were Offered in KPMG Case,” printed May 26, 2006, in The New York Times.

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