The rise and fall of Melvyn Weiss is one of the most dramatic stories within the legal profession. The Bronx-born Weiss, a graduate of NYU Law School, founded Milberg Weiss, which went on to become the nation’s top class-action securities firm. Weiss and his partners became millionaires many times over.
But it turned out that the firm rested on shaky ground. In 2008, Mel Weiss pleaded guilty to participating in a kickback scheme that helped him get clients and cases. Weiss got sentenced to two and a half years in federal prison and had to pay more than $10 million in forfeitures and fines. Milberg Weiss itself had to pay $75 million to settle charges relating to the racketeering conspiracy.
Too bad Weiss had to do prison time. House arrest would have been pretty sweet in his waterfront mansion on Long Island’s Gold Coast, now on the market for $18.8 million….
When he benchslaps prominent Biglaw partners or government lawyers fighting marriage equality, he’s not trying to be funny. He’s just trying to understand the facts of a case or get to the bottom of the legal arguments — and he’s, well, maybe not as diplomatic as some other judges in going about his business.
Let’s check out the latest argument where Judge Posner snarked on hapless counsel….
Well, it’s only taken a week for ExamSoft to go from a random company whose name you couldn’t remember one week after the bar exam to “ExamSoft: Destroyer Of Worlds.” Today we can report that the first lawsuit has been filed against the company. It won’t be the last.
This is going to be a fun ride, and we are only at the beginning. By next week I predict the counter-narrative to get rolling. Maybe a dean will pen a New York Times op-ed about how kids these days, with their computers and text machines and MyBooks, don’t know how to take “personal responsibility.” Somebody will say that it is the test takers’ fault, for buying a program and having the audacity to believe that it would work as intended.
Looking deeper into my crystal taco, as lawsuits proliferate, there will be a circuit split. The Second and the Seventh will affirm decisions against ExamSoft, while the Third and Fifth will reverse. The Third will say that we need to learn a powerful lesson about our over-reliance on technology, while the Fifth will hold that a reasonable person wouldn’t try to write an essay in the clouds: “that’s pure hogwash,” it’ll say.
Eventually this will get to the Supreme Court, which will rule, 5-4, to relieve ExamSoft of liability. Writing for the majority, Justice Alito will argue: “When a person, such as ExamSoft, fails so spectacularly in its duties, the key question is to determine if that person is a man or a woman. If male, the person’s own sense of shame will be punishment enough. But if female, the Court must teach a lasting lesson. Here, we find ExamSoft to be a male person, and therefore must reverse the trial courts. The students should clearly incorporate themselves if they wish to pursue further remedies.” Concurring in part, Scalia will tell us that the bar has become too easy of a test and ExamSoft merely introduced a greater barrier to entry. Breyer’s dissent will be something like: “I was robbed once just like these test takers and, goodness gracious, it was scary.”
Okay, you’re welcome. Now that we all know where this thing is going, we can savor the wonderful journey together. Let’s look at the first lawsuit….
Chum’s in the water, folks. And here come the sharks.
Since we first learned that ExamSoft ruined the otherwise relaxing experience of taking the bar exam, we’ve anticipated lawsuits. You can’t piss off all the would-be lawyers you can get your hands on and expect to come through un-served. It is known.
One person on Twitter put it this way: “Numerosity, commonality, typicality, adequacy: Pretty sure all harmed #barexam takers could form a class action against @ExamSoft.”
Muscle Milk: drink this and you’ll write awesome pro se briefs.
I’m about to share with you an awesome pro se court filing from a law student who drinks Muscle Milk — enough of the stuff to belong to a class action of Muscle Milk consumers. Please try to envision what this submission might look like.
In terms of the student, I’m imagining a real meathead. He belonged to a frat in college. He’s not a great law student, but his family has connections that will help him land a job post-graduation. His bookshelf looks like this.
As for his pro se filing, it’s probably a tale told by an idiot, full of sound and fury (and Bluebooking errors). The UVA Libel Show would call it a Muscle-Milk-induced “roid rage of shame.”
But no, it’s not; it’s so much better than that. It’s actually a work of genius….
A good chunk of America was Googling “class action” this weekend thanks to Facebook. Millions of the site’s users received an email in the last few days with the subject “Re: LEGAL NOTICE OF SETTLEMENT OF CLASS ACTION.” Those that didn’t immediately delete it as spam discovered they’re entitled to up to $10 from the social networking giant for putting them in “Sponsored Story” ads. That’s when Facebook takes something you Liked or a link you posted and uses it in an ad aimed at your friends. (So, word to the wise, never ever post a link on Facebook to a 55-gallon gallon drum of sex lube.)
Fraley v. Facebook, the class action lawsuit that could make a bunch of Facebook users a little richer and a bunch of class action lawyers (led by Robert Arns) a lot richer, was filed in California in 2011 by an enterprising group of plaintiffs led by seamstress Angel Fraley, shortly after “Sponsored Stories” launched. They claimed the company had violated the law by using their names and likenesses in ads without their permission and without paying them. (Lead plaintiff Fraley later dropped out of the suit citing Facebook lawyers’ aggressive tactics, which basically consisted of digging up embarrassing material about her from her profile page.)
Facebook and the plaintiffs settled the suit in December to the tune of $20 million. That $20 million is covering the class action lawyers’ fees ($7.5 million plus expenses), with the rest either being divvied up among approximately 125 million presumably-aggrieved Facebook users who appeared in Sponsored Stories ads, or, if the demand is too great, divided by a bunch of non-profits that work on privacy issues. If the amount of money divided by the number of claimants comes out to less than $4.99 each, the money goes to the non-profits, who surely must be in the midst of planning a major “Rock The Claim” campaign. Unfortunately, I can’t help out.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
It’s the legal profession’s equivalent of a long-term relationship.
When Michelle Waites, Senior Patent Counsel for Xerox Corporation, attended The LGBT Bar’s Lavender Law conference several years ago, she wasn’t sure what to expect. She left having forged a lasting business relationship that still endures today.
It was during The LGBT Bar’s event – an annual gathering of more than 1,600 lesbian, gay, bisexual, transgender and allied legal professionals – that Waites first met Marla Butler, a partner at Robins, Kaplan, Miller & Ciresi LLP, who specializes in patent law.
Today, the two are still close friends as well as professional colleagues. Butler’s firm continues to work with Xerox – a business partnership forged via The LGBT Bar.
On November 19th, The Bar will present its first-ever conference outside the United States. Dubbed “A Lavender Law Experience for Europe,” the day-long Business Legal Conference will replicate programs such as the one that brought Waites and Butler together for legal professionals in Europe.
The JOBS Act created new tools for companies to publicly advertise securities deals online. As a result, thousands of new deals have hit the market and hundreds of millions in capital has been raised, spurring a wealth of new business development opportunities for attorneys.
Fund deals, startup capital raises, PIPE deals and loan syndicates are just a handful of the transactions benefiting from the JOBS Act. InvestorID FirmTM is a platform designed to help attorneys equip their clients with the workflow, marketing and compliance tools to publicly solicit a securities offering online. By providing clients with the tools to painlessly navigate the regulatory landscape of general solicitation, InvestorID FirmTM helps attorneys add value above just legal services.
The Jumpstart Our Business Startups Act (JOBS Act) went into effect in 2013 and permits Regulation D offerings of securities to be advertised publicly. This means that funds and companies can now use social media, emails and web sites to market transactions to new “accredited” investors.
However, with these new powers come new pain points. InvestorID FirmTM provides a secure, fully hosted, cloud-based platform with a breadth of tools for your clients, including: