State Attorney General Class Actions Raise Concerns
October 8, 2007, 12:00 AM EDT
Law360, New York (October 8, 2007, 12:00 AM EDT) -- The fall of plaintiffs’ class action lawyer William S. Lerach, who recently pled guilty to conspiracy to obstruct justice, reveals the irony that underlies most class action lawsuits. The lawyers who bring these cases profess to serve as “private attorneys general”—representing average Americans who want justice from bad corporations.
But it turns out that aggrieved clients did not hire Mr. Lerach to sue companies that treated them badly. This lawyer crafted those grievances himself, and then filed lawsuits in the name of stockholders who had previously...