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Lerach Gets 2 Years

From the WSJ Law Blog:

Famed plaintiffs lawyer Bill Lerach received a two-year sentence today for his role in the alleged kickback scheme at Milberg Weiss. Lerach, 61, was also sentenced to two years probation, fined $250,000 and ordered to complete 1,000 hours of community service. “This whole conspiracy corrupted the law firm and it corrupted it in the most evil way,” U.S. District Judge John Walter said during the hearing. Here’s the AP story.

Lerach pleaded guilty last fall to a felony count of conspiring to obstruct justice and to submit false testimony in federal judicial proceedings.

To recap, prosecutors have claimed that Milberg shared legal fees with clients to induce them to quickly file securities class actions. Lerach has acknowledged making secret payments to former client Steven Cooperman. For an overview of the case and its players, click here.

Under the plea bargain, two years was the maximum amount prosecutors could request. Lerach had proposed 6 months jail and 6 months home confinement.

The post continues:

Here’s how a couple prominent folks are summing up the Lerach saga. First, T.J. Rodgers, the founder and chief executive of Cypress Semiconductor: “He’s getting what he deserves,” Mr. Rodgers said from a speaker phone on his floating desk in his outdoor hot tub overlooking his Silicon Valley vineyard. “I once likened Lerach to low life form, somewhat below pond scum. Thank goodness he’s met my highest expectations.”

On the flip side, here’s the take of Ralph Nader: “Given the corporate crimes that Mr. Lerach has brought to justice during his long career, his crimes pale by comparison. His success is partially a reflection of the repeated failure of government enforcement agencies to protect millions of defenseless investors from fraud.”

A floating desk in a hot tub overlooking a vineyeard? If I had any populist blood, it’d be boiling.

Anyway, more here.