Rented Plaintiffs, Hidden Kickbacks

A co-founder of a leading shareholder-litigation firm ran it for decades. Prosecutors say the firm made secret payment arrangements with a handful of people who agreed to be the named plaintiff in its class actions, so it could file first and keep control of the cases. Millions changed hands. The judges were told nothing, and false statements were given in depositions and in court papers. More than two hundred lawsuits over twenty-five years were said to be affected.