, a law firm that has not only brought countless class action suits against fund firms and asset managers, but against companies in various industries, is under investigation by federal prosecutors, reports the Wall Street Journal
Prosecutors are investigating the firm for fraud, kickbacks to plaintiffs, and conspiracy, according to the Journal, and have taken a first stab with a lawsuit filed against Seymour M. Lazar, a plaintiff in more than 50 Milberg Weiss securities cases from 1981 to 2004. Prosecutors allege that a New York law firm paid Lazar "millions of dollars in secret and illegal kickbacks," according to the Journal.
The law firm responded that the allegations "unfairly implicates the firm in the wrongdoing alleged against Mr. Lazar" and called the allegations themselves "baseless," reported the Journal.
The suit is just one part of a broader investigation into the firm concerning similar kickbacks, fraud and conspiracy in securities lawsuits.
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