Facing Indictment, Mel Weiss Steps Down at Milberg

The class-action litigation firm of Milberg Weiss responded to news that an indictment is coming for its name partner, Melvyn Weiss, today:

Milberg Weiss understands that a second superseding indictment will be issued tomorrow that will include new charges against the Firm and also Melvyn Weiss. Mr. Weiss has decided to discontinue his participation in Firm management in order to focus on the defense of the charges against him. The Firm’s other partners, none of whom is alleged to have been involved in any wrongdoing, will be responsible for its management and litigation activities. Mr. Weiss will remain available to counsel clients and Firm attorneys. The Firm remains proud of Mr. Weiss’s and the Firm’s accomplishments over the years and will continue to fight for its clients and class members and to produce the excellent results for which it is known. We do not anticipate any interruption in our work and we look forward to putting this difficult period behind us.

For those of you who haven’t been following, here’s the oft-repeated background boilerplate on the case from The Wall Street Journal: “The case, brought last year in federal court in Los Angeles, alleges Milberg Weiss secretly paid millions to clients in exchange for their serving as name plaintiffs in securities class actions and shareholder suits that yielded more than $200 million in fees for the law firm.”