Class action giant Milberg Weiss & Bershad is to practise as Milberg Weiss after former name partner David Bershad admitted paying secret kickbacks to claimants on Monday (9 July).
Bershad pleaded guilty to charges of “obstructing justice by corruptly influencing [lawsuits]” and making false statements in court between 1981 and 2005.
He agreed to pay almost $8m (£4m) in fines and to cooperate with ongoing investigations into the scandal. Bershad will be sentenced next year.
Meanwhile, physician and Milberg Weiss client Steven Cooperman yesterday (10 July) pleaded guilty to receiving kickbacks from the firm, reportedly estimated at $6.4m (£3.2m).
A spokesman for the firm said on Monday: “We understand that David Bershad will plead guilty today to conspiracy to obstruct justice. Bershad had been on a leave of absence since May 2006 and his relationship with Milberg Weiss has been terminated.”
He added: “We remain confident that his actions will have no effect on the firm's commitment to its clients and its ongoing work to protect public shareholders and consumers.”
The developments come with Milberg Weiss continuing to sustain partner departures, the embattled plaintiff firm having seen its partnership almost halve since the scandal broke in May 2006, when it had 47 partners.
Former name partner Steven Schulman quit the firm last December after he was indicted in connection with the kickbacks scheme.
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