On May 19, William Lerach, formerly of the law firm of Milberg, Weiss, Bershad, Hynes & Lerach LLP, began his prison sentence for his role in a $250 million illegal kickback scheme. On the same day, Senator John Cornyn (R-TX), citing the possibility of widespread criminal practice in the area of securities class action law, introduced the Securities Litigation Attorney Accountability and Transparency Act (S. 3033). This legislation would require the disclosure of payments between plaintiffs and attorneys, the competitive bidding as a factor for the selection of lead counsel, and a GAO study to determine appropriate attorneys fees. Advocates argue that these reforms are essential to update securities class action law. Opponents argue that the Act is unnecessary and overstates the current level of abuse. Audio recorded on June 25, 2008.
The Honorable John Cornyn
United States Senator, Texas
Followed by comments from:
Mr. Holt M. Lackey, United States Senate - Committee on the Judiciary, Counsel to U.S. Senator John Cornyn
Mr. Andrew J. Pincus, Partner, Mayer Brown
Russell Senate Office Building