The Price of “Kickbacks” - Plaintiffs Beware
On March 19, the New York Law Journal reported that Melvyn Weiss joined his former law partners, and pled guilty to racketeering in connection with a scheme whereby the firm would “kick back” a percentage of the firm’s recovery to the lead plaintiffs in shareholder class action suits. In addition to paying over $10 million in fines and forfeited fees, it also appears that he will join his former partners in being disbarred. In case you haven’t already guessed it, the lead plaintiffs that were allegedly part of the scheme are still awaiting trial on these charges.
Tags: kickbacks, unethical lawyers