Michael Parrish of the New York Times reports that class action plaintiff lawyer Steven Schulman, formerly a named-partner at the plaintiff class action law firm now known as Milberg Weiss, has pleaded guilty to a federal racketeering conspiracy charge. According to Parrish’s article, 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.” Schulman is reportedly cooperating with federal prosecutors, and “agreed to forfeit $1.85 million in profit, pay a $250,000 fine and accept a prison sentence.” While Schulman could be sentenced to upwards of 20 years, Parrish reports that the sentence is expected to fall within the range of 27-33 months.
Mr. Parrish’s article, entitled “Ex-Partner at Law Firm Pleads Guilty in Kickback Case,” may be found in the October 10, 2007 edition of the New York Times.
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