Yesterday, class action trial attorney's collectively smiled with glee as Bernard Madoff was sentenced to a maximum 150 years in prison. Should individuals of propagating securities fraud be punished? Of course.
However, as Congress is lobbied to change the manner in which securities fraud is deterred and prosecuted let us not forget the case of Bill Lerach. William Lerach, an attorney for the New York law firm of Millberg Weiss was sentenced to two years in prison for his role in a scheme to pay class action plaintiffs inducing them to sue. Formerly the largest plaintiff's firm in the country, to date four partners have plead guilty to federal charges.
Now, in the wake of the Madoff scandal, some attorneys are lobbying congress to expand class action securities lawsuits.
Securities class action filings have risen steadily in the past several years but have done nothing to deter the questionable behavior that led to the financial meltdown. Increasing the number of lawsuits and adding to the costs that businesses must bear in this recession will only slow our economic recovery and delay the creation of much needed jobs.
As Congressional leaders are lobbied to make changes to our nation's legal and financial infrastructures, they would be wise to keep in mind job creation and economic growth in times such as these.
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