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The Lerach Effect

The last name “Lerach” may be prone to cause indigestion, especially for those public companies that were named in one of his myriad class-action lawsuits. Before he was sentenced to two years in prison Monday, Lerach ever-so-artfully said, “I knew what I was doing was wrong.”  And so it goes. In my reporter days, receiving a press release from Lerach’s law firm seemed like a cheap and easy thrill when hunting down a juicy business story. But after reading a couple of paragraphs something always smelled a little fishy. With the market in a state of flux, it wouldn’t surprise me if we begin to see a new flurry of unfounded class-action lawsuits.

 

Evan Pondel, Senior Associate, epondel@pondel.com