A major law firm specializing in plaintiff securities class actions is fighting to keep one of its ongoing cases as the U.S. Chamber of Commerce calls for an investigation of accusations that the firm may have been involved in a client�s allegedly improper conduct.
Milberg Weiss Bershad Hynes & Lerach is representing all five lead plaintiffs in a case against Terayon Communications Systems Inc. The Santa Clara, Calif., company manufactures cable television modems.
Filed in federal court in San Francisco in April 2000 immediately after a 25 percent, one-day plunge in the company�s stock price, the securities class action alleges Terayon previously provided misleading information to investors. As a result, the suit contends, the stock price was pushed to unsustainable heights, leading to the plunge. . . .
[The judge's opinion disqualifying two lead plaintiffs who had shorted the stock before it dropped] also expresses concern that Milberg Weiss may have been involved in Cardinal [Investment Co�s] "scheme" to cause the stock price to fall.
Details here from the ABAJournal.com.