Embattled class action firm Milberg Weiss may be in talks with federal prosecutors to settle the criminal case that alleges that the firm paid kick-backs to its class action clients. The Wall Street Journal reports that the firm had a meeting with the U.S. Attorney's office in Los Angeles to hash out the shape of a possible deal. Prosecutors are reported to be in plea negotiations with Milberg partner David Bershad.
Meanwhile, for more about former-Milberg Weiss partner William Lerach, who is reported to be leaving his firm Lerach Coughlin, check out this New York Times story, which suggests that Lerach's move may be tied to the increasing momentum in the kickback investigation.
According to our sister publication the Recorder, there's widespread speculation that Lerach's purported departure could be linked to a potential Bershad guilty plea. "Several people with knowledge of the case said that if Bershad were to cooperate with prosecutors, he'd probably be able to point to specific financial transactions in which Lerach played a role," the story states.