New York-based Milberg LLP is close to a settlement with federal prosecutors over a class action that alleges attorneys at the law firm paid kickbacks to clients, the Wall Street Journal reported today, citing two people familiar with the discussions.
Government officials allege that Milberg paid more than $11 million in kickbacks to clients in exchange for them serving as plaintiffs in securities class action suits.
Federal prosecutors and representatives for Milberg held discussions and made progress on the amount of money the firm will pay, the report said.
In late March, Melvyn Weiss, an attorney at Milberg, pleaded guilty to paying kickbacks to clients of the firm, a month after former partner William Lerach was sentenced to two years in jail for his role in the scheme (InvestmentNews March 21).
Mr. Weiss is scheduled to be sentenced later today, according to published reports, and could face 18 to 33 months in jail (InvestmentNews March 21).
A Milberg spokeswoman declined to comment.
The press office at the U.S attorney’s office in Los Angeles, which is leading the case, did not immediately respond to a call for comment.
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