HOUSE Republican Leader John Boehner

Washington, Feb 11, 2008 -

House Republican Leader John Boehner (R-OH) today issued the following statement in response to news that William Lerach, “a former partner at a prestigious New York law firm,” has been “sentenced to two years in federal prison for his role in a lucrative kickback scheme involving class-action lawsuits” (Wall Street Journal Online, February 11, 2008):

“This sad episode underscores the need for Congress to reform securities litigation laws to stop renegade trial lawyers from using the judicial system to defraud the American people.  Frivolous lawsuits damage our economy and cost American jobs.  The Democrat-controlled Congress has conveniently turned a blind eye to this problem -- much to the delight of the trial lawyer lobby, which contributes massive sums to the Democratic Party.  Mr. Lerach and his partners themselves gave nearly $2 million in campaign contributions to Democrats prior to Mr. Lerach’s conviction.

“Speaker Pelosi and the Democratic majority that controls Congress should schedule immediate hearings on H.R. 3931, legislation that would demand greater accountability and transparency from attorneys in securities litigation, or similar legislation that would make it more difficult for renegade trial lawyers to defraud the judicial system.  Abuse of the judicial system threatens American jobs and cheats American taxpayers.  The Democratic Congress’ indifference to this issue is further evidence that Washington is broken.”

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