Federal prosecutors have decided not to seek charges against class-action lawyer William Lerach and his former partner, people familiar with the investigation said Tuesday. Lerach and Melvyn Weiss, former partners who had a bitter falling out in 2004, were told Friday that they would not be prosecuted in connection with a five-year investigation into whether they paid kickbacks to people who served again and again as the lead plaintiffs in shareholder lawsuits, some which date to the 1980s.
It is unclear whether Weiss' law firm, Milberg, Weiss, Bershad & Schulman, or other partners will be indicted, the people said on condition of anonymity because the Justice Department has not made any public comment about the lawyers. Lawyers for Lerach and Weiss did not immediately comment Tuesday.
Retired lawyer Seymour Lazar was indicted in June, accused of accepting kickbacks from Milberg, Weiss in exchange for serving as plaintiff, or getting others to serve, in more than 50 suits. Paul Selzer, Lazar's lawyer, also was indicted on charges he laundered the payments to Lazar.
Details here from the AP via the New York Times. My earlier post about the case is here.