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September 19, 2007

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Jim

I once had the pleasure of staying in Lerach's penthouse ski home in Steamboat Springs (as the guest of one of the associate attorneys in his firm.) Six bedrooms, seven bathrooms - class action work buys a lot of chalet. I enjoyed drinking as much of his single-malt scotch as I possibly could.

Ralph Adamo

Mr. Devore's delight in the recent Lerach plea bargain says much about Mr. Devore, and it isn't very good. He says that back in 1995, he helped write “The Private Securities Litigation Reform Act.” He claims erroneously that "This act was aimed at reducing the abuse of the federal court system by lawyers like Lerach and had the distinction of being the first law enacted over President Clinton’s veto."

The PSLRA was nothing of the sort. Yes it was intended to reduce the number of lawsuits, but it was specifically done to make it EASIER for corporations to commit fraud and to get away with it. In fact, the PSLRA goes down in history as one of the most important factors in making the Enron fraud, the WorldCom fraud, and countless others possible. Had there been no PSLRA as an incentive to commit fraud, the fraud would have been caught sooner and stopped dead. Mr. Devore is either in denial or he is simply a corporate shill, who exists to protect the interests of corporate crime.

It is a fact, for example, that Millberg's case against WorldCom was originally tossed out, based on......you guessed it, the PSLRA. Meanwhile the fraud at WorldCom went ahead full steam, along with many others. When the situation reached a crisis point and the damages went into the billions upon billions of dollars, the SEC finally decided to take a look. And where did they go to start their investigation? The SEC used the Millberg-Lerach complaint--a literal blueprint of the WorldCom crimes.

So instead of cheering for Mr. Lerach's downfall, Mr. Devore should be holding his head in shame for his role in making some a massive series of frauds possible. Congratulations, Mr. Devore.

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