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EX-MILBERG PARTNER FILES TO DROP CHARGES NEW YORK � One of the indicted former name partners of New York’s Milberg Weiss Bershad & Schulman has moved to dismiss federal criminal charges against him. Steven Schulman, along with the firm and fellow name partner David Bershad, was indicted last May by Los Angeles federal prosecutors for allegedly paying illegal kickbacks to individuals serving as lead plaintiffs in securities class actions lawsuits brought by the firm. All three have pleaded not guilty. In motions papers filed Friday, Schulman took issue with the government’s characterization of the payments. “A true ‘kickback’ is a payment to a party that has power and control over the outcome or terms of a transaction, in order to induce that party to use its power and control for the benefit of the ‘kickback’ payor,” Schulman argued. “Here, the named plaintiffs in the class action lawsuits exercised no such power or control, as the Government well knows.” Schulman also claimed the government’s case is deficient because it fails to demonstrate how the interests of the lead plaintiffs diverged from those of other class members. He also argues that the government’s case improperly conflated allegations concerning three former lead plaintiffs, two of whom are cooperating with prosecutors, into a single scheme. “[T]here are no allegations that the three ‘paid plaintiffs’ . . . knew each other or that there was any single, illicit agreement into which they simultaneously entered with each other or with any Milberg Weiss attorneys.” The motion is set to be heard June 4 in Los Angeles. Schulman, who took a leave of absence from the firm after the indictments were announced, formally resigned last December. The firm is now known as Milberg Weiss & Bershad.

New York Law Journal

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