Report: Milberg Attorneys Desperate to Escape

No one’s surprised that Milberg Weiss is falling apart under the threat of an indictment; indeed, many plaintiff lawyers seem to think that’s the whole point of charging the firm, rather than just its partners. But the speed with which resumes have been going out is nonetheless striking to some competing class action attorneys.

“We’re getting inundated with resumes and calls,” said one. The feeling in New York is that many Milberg lawyers have little choice: with securities firms vying to attract large institutional investors as their clients, it’s more important than ever to avoid tainting the politicians who run those funds.

And that’s hard when you’re indicted: over the last week, New York Attorney General Eliot Spitzer has returned funds from Milberg, and the Ohio Attorney General has fired the firm as a result of the charges.

— Justin Scheck