US law firm facing Andersen-style threat

Law firm Milberg Weiss Bershad & Schulman could lose many of its top
clients in the same way that Arthur Andersen lost clients following its role as
auditor at Enron, legal experts have warned.

This follow two of the firm’s partners being charged by federal prosecutors
with mail fraud and conspiracy.

US legal experts claim the firm is the largest US law firm ever indicted. The
law firm has won more than $45bn for investors in securities-fraud cases.

New York University law professor Stephen Gillers said the indictment against
Milberg Weiss was comparable to the charges made in 2002 against Andersen, which
led to the disintegration of the firm.

The US Supreme Court later overturned the conviction against Andersen, but it
came too late for the firm, which had already been split and sold off to various
rival Big Five practices around the world.

Milberg Weiss and the two partners, Steven Schulman, 54, and David Bershad,
66, denied the charges, calling them ‘unjust, misguided, and misinformed’.

The New York-based law firm employs 125 lawyers.

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