Class Action Law Firm Milberg Weiss Opens Checkbook To Keep Attorneys

Sep 11, 2006 | By: Michael J. Hassen

As Defections Mount, Class Action Firm Offers Financial Incentives to Retain Lawyers

We have devoted several articles to the trials facing class action plaintiff firm Milberg Weiss Bershad & Schulman, from its federal indictment for allegedly paying millions in kickbacks to clients to serve as class representatives to the continual loss of top attorneys. Now Nathan Koppel of the Wall Street Journal reports that Milberg Weiss has decided to fight defections with a different kind of kickback – bonuses and higher salaries for attorneys who stay with the firm. Koppel reports that almost half of the Milberg Weiss partners have abandoned ship in the wake of the firm’s federal indictment on fraud charges. In addition to the 20 partners who have left (or soon will leave) the firm, about 20 more lawyers have left as well.

Koppel reports that the firm that once had about 110 lawyers and now has about 70 “has promised special bonuses and fatter paychecks for people who stay.” Koppel further reports Weiss has offered partners “a greater share of the firm’s equity or higher salaries” and that the salaries of some partners may double.

Nathan Koppel’s article, entitled “At Milberg Weiss, A Move to Stanch Loss of Top Talent,” may be found on page B1 of the September 9, 2006 online edition of the Wall Street Journal.

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