After we mentioned the departure of indicted partner Steven Schulman from the indicted law firm Milberg Weiss, some of you had funny things to say. See, e.g., this comment.
As it turns out, there were reasons unrelated to federal criminal charges for Steve Schulman to leave Milberg. From Legal Pad:
Schulman’s deal with the firm required that upon his departure, he receive a sum based on Milberg’s income during his last year at the firm. With 2005 a considerably better (as in, indictment-free) year for the firm than 2006, the partner had a real incentive to leave. Indeed, we’re told that by departing before the end of 2006, he’s in line to get about $5 million more than if he had waited.
It’s all about the benjamins, baby. You can take the lawyer out of the plaintiffs’ firm; but you can’t take the plaintiffs’ firm out of the lawyer.
And that $5 million could come in handy if Schulman does strike a plea deal — something that, according to lawyers familiar with the case, has not happened yet, but very well could. We hear that Schulman is open to the idea, and his switch of attorneys earlier this year — from the NY brawler Ed Hayes to former federal Judge Herb Stern — would seem to lend itself to negotiations. The hitch is that if he were to flip, Schulman would probably have to offer up a superior or two, namely Melvyn Weiss or William Lerach.
Very interesting. We know many lawyers who have worked with Judge Stern, and some say that at times he can be difficult, controlling, and arrogant (although you’d be too if you were an ex-Article III judge). But it’s certainly true that he’s not as much of a street-fighter as Ed Hayes, one of the deans of the Mafia defense bar (along with Bruce Cutler and Gerald Shargel).
The prospect of Schulman flipping on Mel Weiss or Bill Lerach is dizzying. The glee among Fortune 500 general counsels and Biglaw securities lawyers — and the Schadenfreude among less successful plaintiffs’ lawyers — would be boundless. Happy Kwanzaa!
5 Million Reasons to Quit Milberg [Legal Pad / Cal Law]
Partner at Law Firm Resigns to Focus on Criminal Charges Against Him [New York Times]
Steven G. Schulman bio [Milberg Weiss]
Earlier: Musical Chairs: 12.13.06