FOR IMMEDIATE RELEASE—March 20, 2008
Contact: Bryan Quigley
202-463-5569
Weiss Plea Agreement Latest Example of Unethical and Illegal Conduct in Plaintiffs' Trial Bar
Statement of Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform, on the announcement of the plea agreement of Mel Weiss in the kickback scandal related to his decades-long securities law practice.
“Mel Weiss and the other lawyers who dominated securities class action litigation for decades are going to prison for conspiracy and racketeering. Over twenty five years, these officers of the court disregarded their responsibility to their clients and corrupted the legal system for their own personal gain.
“Bill Lerach and Mel Weiss practically invented the securities class action lawsuit and used it throughout their careers to cause major harm to our judicial system. The lawsuits they brought resulted in over-compensating some investors and short-changing others – all while collecting hundreds of millions of dollars in legal fees for themselves.
“The guilty pleas of Mel Weiss, Bill Lerach, David Bershad and others enmeshed in their decades-long scam underscore the need for legislation introduced by former Rep. Richard Baker (R-LA) and now sponsored by Rep. Jeb Hensarling (R-TX). This bill will force more transparency and accountability of lawyers in securities litigation.
“Congress and the Securities and Exchange Commission should also undertake a review of securities class action litigation as it currently exists to make sure it is fair to all parties and truly benefits investors, not lawyers.”
In Focus
Arbitration Better than Court for Consumer Debtors
A new analysis of California debt collection arbitration cases provides the latest evidence that arbitration is a much better alternative for the consumer than the court system.
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Read the analysis (pdf)
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