New Bill Would Crack Down On Plaintiff Kickbacks

Law360, New York (May 20, 2008, 12:00 AM EDT) -- U.S. Sen. John Cornyn (R-Texas) introduced a bill Monday that aims to stop the allegedly widespread criminal practice of paying clients to serve as lead plaintiffs in securities class actions.

The Securities Litigation Attorney Accountability and Transparency Act was introduced on the same day that disgraced trial attorney William Lerach reported to a California prison to begin serving a two-year sentence for participating in an illegal kickback scheme.

The legislation would require the disclosure of any payments between plaintiffs and attorneys, and it would require courts...
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