The New York Times continues to ponder what exactly we can discern from the purported retirement of famed plaintiff attorney, Bill Lerach. The bane of the Overlawyered set, Lerach made his name at securities class action juggernaut, Milberg Weiss. After a falling out with Milberg's founder Melvin Weiss, Lerach broke out on his own in 2004 four.

Obviously the last few months haven't been stellar for Milberg, what with partners under indictment and a firm-wide investigation ongoing into the use of kickback payments to compensate lead plaintiffs for participating in the firm's class actions. Speculation is well under way that Lerach's departure may mean that the seven year investigation into his former firm is finally catching up to him.

While no one in the know is talking just yet, the NYT speculates that a Lerach resignation could be a signal of a looming deal with federal prosecutors, one that would spare his firm should indictments start raining down. For sure, deals are being thrown around left and right at the moment, but none so far that seem to favor Lerach.

Last week, former Milberg partner David Bershad struck his own deal with federal prosecutors, pleading guilty to some of the charges against him. The question is, in exchange for what - and whether the second indicted Milberg partner, Steven Schulman follow suit. There is even word that Milberg Weiss is seeking a firm-wide deal.

Whatever the outcome, no one is calling any of these maneuverings good for Lerach and many are linking the dealings to talk of Lerach's retirement...and while the former partners threaten to do each other in, rival securities firms are moving in to pick up the slack.

--MDT

Labels: Bill Lerach, David Bershad, kickbacks, Melvyn Weiss, Milberg Weiss, Steven Cooperman, Steven Schulman