Attorney Fraud as a Liability Defense
Read Peter Lattman's article in this morning's Wall Street Journal, "Coke Tries New Defense," WSJ, Oct. 22, 2007, A12. Mr. Lattman reports that Coke has asked a federal judge to deny class-action status to a case based upon attorney William Lerach having entered into a plea agreement admitting "criminal conspiracy to obstruct justice in securities cases just like this one."
The defense is interesting not only for its impact in securities cases, but other liability areas in which fraud has become an issue. The areas that leap to mind are asbestos and silica. Extensive fraud has been documented in both areas. The fraud issue is already being raised in some cases. Maybe it will mature into a meaningful defense.
