Yesterday, class action trial attorney's collectively smiled with glee as Bernard Madoff was sentenced to a maximum 150 years in prison. Should individuals of propagating securities fraud be punished? Of course.
However, as Congress is lobbied to change the manner in which securities fraud is deterred and prosecuted let us not forget the case of Bill Lerach. William Lerach, an attorney for the New York law firm of Millberg Weiss was sentenced to two years in prison for his role in a scheme to pay class action plaintiffs inducing them to sue. Formerly the largest plaintiff's firm in the country, to date four partners have plead guilty to federal charges.
Now, in the wake of the Madoff scandal, some attorneys are lobbying congress to expand class action securities lawsuits.
Securities class action filings have risen steadily in the past several years but have done nothing to deter the questionable behavior that led to the financial meltdown. Increasing the number of lawsuits and adding to the costs that businesses must bear in this recession will only slow our economic recovery and delay the creation of much needed jobs.
As Congressional leaders are lobbied to make changes to our nation's legal and financial infrastructures, they would be wise to keep in mind job creation and economic growth in times such as these.
I agree with what you have said here, and i think legal action is one method in which the market is trying to sort out its own flaws. I have always beleived that good legislation often comes after important court cases. With Madoff now behind bars for the rest of his life and justice being done (at least in a legal sense), the hope is that Americans will require closer monitoring of how their money is managed. I beleive that the government and the market will meet that demand.
ReplyDeleteThis is one lawyer I'd like to see make it.
ReplyDeletehttp://www.coreybrinson.com/
Did you catch Corey on Face the State last Sunday? He'll be a very impressive candidate.
Trial lawyers are the lowest form of life on the planet.
ReplyDelete