Prosecutors React to Milberg Recusals

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The New York Sun

In a sign of concern about the difficulties the court system is having handling the criminal indictment of a leading class-action law firm, Milberg Weiss Bershad & Schulman LLP, federal prosecutors have asked that they be informed before any more judges recuse themselves from the matter.

So far, five federal judges in Los Angeles have begged off the case, in which the firm, two of its name partners, Steven Schulman and David Bershad, a perennial plaintiff in Milberg Weiss securities suits, Seymour Lazar, and Mr. Lazar’s lawyer, Paul Selzer, are accused of conspiring to pass illegal payments to Mr. Lazar and other plaintiffs.

Two of the judges who recused cited their handling of class-action suits brought by Milberg Weiss, while one said he had investments in companies sued by the firm and mentioned in the indictment. One judge also noted that his appointment to the bench was supported by a former Milberg Weiss partner, William Lerach.

In a filing made public yesterday, prosecutors asked for advance notice of any future recusal and a chance to make a presentation to the court about “all facts known to the government that may be relevant to any such determination.”

Judge John Walter, who was appointed by President Bush in 2002,is the latest to be randomly assigned to the Milberg Weiss matter. The reassignments of the case have caused delays of hearings for two men who are not charged in the Milberg Weiss indictment, but have agreed to plead guilty in related proceedings. The firm, its partners, and Messrs. Lazar and Selzer have denied wrongdoing and promised to fight the charges.


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