U.S. Readies Case Against Tort Lawyers

The New York Sun reports:

Federal prosecutors have told two partners at a leading New York class-action law firm to prepare to be indicted on charges stemming from an investigation into alleged illegal payments to plaintiffs in securities lawsuits, a lawyer involved in the case said yesterday.

Facing indictment are David Bershad and Steven Schulman of Milberg Weiss Bershad Schulman LLP, according to an attorney for Mr. Schulman, Edward Hayes. He said he was informed that criminal charges could also be brought against the firm itself.

"They're talking about a Rico case against the firm," Mr. Hayes said, referring to the federal Racketeering Influenced and Corrupt Organizations act.

It's was inevitable that tort lawyers would make enemies.