Class Action Plaintiff Firm Indicted In California Becomes Target Of Lawsuits

Jul 21, 2006 | By: Michael J. Hassen

Indiana Court Requires Class Action Firm Milberg Weiss and Its Class Representatives to Produce Financial Records Dating Back to 1998

David Cay Johnston of the New York Times reports today that an Indiana court has granted a motion by American United Life Insurance Class to compel class action plaintiff firm Milberg Weiss Bershad & Schulman LLP and four of the firm’s clients to produce financial records dating back to 1998. Federal prosecutors filed criminal charges in California against Milberg Weiss and two of its partners in mid-May 2006 alleging that the firm paid millions of dollars in kickbacks to clients to serve as plaintiffs; charges the firm and its partners deny. American United Life filed the motion in an effort to discover whether the firm paid four of its clients to serve as plaintiffs in an action against the company that alleged it had improperly sold “tax-deferred annuities wrapped in retirement accounts that were themselves tax-deferred.” The results of the court’s order could be far-reaching, especially if it is any indication of court rulings to come in the many other lawsuits that have been filed against Milberg Weiss.

Mr. Johnston’s article, entitled “Judge’s Wide Disclosure Order Could Tie Up Litigation Firm,” may be found in Section C. of the July 21, 2006 edition of the New York Times.

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