Texas billionaire Sam Wyly is concerned that the cozy relationship between Milberg founder Melvyn Weiss and Computer Associates board of director member (and former highly embarrassing U.S. Senator, Alfonse D'Amato), might have undercut the compensation obtained for aggrieved investors in CA.

Wyly has filed suit against Milberg, and a host of other firms who participated in the case (Stull, Stull & Brody; Schiffrin, Barroway Topaz & Kessler; and Coughlin Stoia Geller Rudman & Robbins). A key allegation in the case involves a summer 2003 meeting between Weiss, D'Amato and another CA board member in which a reasonable settlement was discussed.

The reasonable deal that followed included an end to all pending actions against CA, immunity for past and present CA executives and board members as well as less that a penny to the dollar reimbursment of lost funds - a result which the Wyly team has labeled "one of the most egregious cases of [legal] malpractice I've seen in 23 years.".

Get the full-on details of the Wyly / Milberg suit at Newsday.

And for a little more background on Mr. Wyly, including proxy fights at CA and a particularly spectacular hedge fund flame-out, see this BusinessWeek article.

-- MDT

Labels: Alfonse D'Amato, CA, Melvyn Weiss, Milberg Weiss, Sam Wyly