The story is coming out that Melvin Weiss, former class action securities lawyer, was sentenced to 30 months and fined $10 million under a plea deal with the U.S. Department of Justice. The Milberg Weiss law firm has been a national presence for years, handling some of the largest securities class actions in U.S. history.

I would be a hypocrite if I failed to write about this and say the obvious. As I’ve noted before, getting rid of the cheaters is critical to a healthy civil justice system. That’s true regardless of which side the cheater operates from. Melvin Weiss did a grave disservice to consumers and investors. I have my doubts that 30 months + $10 million is sufficient, if you think about the harm inflicted. Even so, it’s done.

I imagine that there will be quite the feeeding frenzy on the corruption at the Milberg Weiss firm in the blogosphere,  at the Chamber of Commerce, from the tort reform advocates, and over at FOX news. But let’s remember that the corruption that nurtured Milberg Weiss operated heavily on the investment firms, as well. If that’s not readily apparent, here’s a quick list for the consideration: Bear Stearns, mortgage lending, Enron.

All of that is beside the point. As one who handles class actions, I’m strongly in favor of getting rid of the corrupt. Good news in the end.

David Sugerman

Interesting brouhaha reportedly brewing over new ethics rules taking effect. It seems that the Oregon legislature voted to apply long-standing ethics disclosure rules to local government officials, and some are walking away angry, or at least questioning the wisdom.

I haven’t reviewed the ethics rules first hand, but according to news reports, they require disclosures of government officials’ sources of income (but not amounts), business ownership interests, adult family relatives, and property owned within the jurisdiction. The theory behind the disclosure requirements is that we who are mere citizens would like to know that the multi-million dollar consulting contract or controversial zoning change isn’t quietly benefiting your family or your pocketbook.

Some are objecting to what they see as an invasion of privacy. I have to say that in this era of the internet, computer data, and domestic spying, I have grown more concerned about privacy concerns. But even so, I don’t think these disclosures are problematic for a couple of reasons.

The whole government office thing is a privilege and not an entitlement. For those who are unhappy with the disclosures, the right choice is to pull a Johnny Paycheck (I’m dating myself–country and western anthem, with the famous chorus, “Take this job and shove it. I ain’t workin’ here no more.”) or to not seek office. The disclosures here provide a means for ordinary citizens to monitor government officials’ decisions. Transparency provides for clean government, and for that reason, it seems to me that this is the right thing.

David Sugerman