Plaintiffs' class-action law firm, Milberg Weiss Bershad & Schulman, already under fire and under indictment for allegedly paying millions of dollars in incentives to entice clients to become class-action plaintiffs, may have a new problem. The firm may be compelled to disclose all of its financial records and information from 1998 to date pursuant to an order recently entered by a state judge in Indiana.
Four plaintiffs represented by Milberg Weiss filed a class-action suit in Indiana state court against American United Life Insurance Company, claiming that the defendant improperly sold tax-deferred annuities wrapped in other investments that were themselves already tax-deferred. The insurance company sought discovery, in the wake of Milberg Weiss' California indictment, on whether the law firm made or promised to make illegal payments to the four plaintiffs.
The court's order requires the four plaintiffs to turn over their financial records since 1998. The order then compels Milberg Weiss likewise to disclose its financial records since 1998 unless the court modifies the order following the initial disclosures by the plaintiffs because it finds there is no reason to pursue the issue further.