One of the most notorious law firms in the country is setting its sights on Santa Ana-based title insurer First American Corp.
New York-based Milberg Weiss LLP said on Tuesday it is looking into First American’s 401(k) savings plan as a prelude to possibly suing the title insurer.
The firm suggests that First American may have violated the law by allowing employees to invest its stock when it wasn’t wise to do so, and by failing to disclose corporate problems to workers in the plan.
Lawsuits over company 401(k) plans are a common tactic of firms such as Milberg Weiss, which sue companies after big drops in their stock or other problems.
The firm said its investigations are a result of a Nov. 1 lawsuit filed by New York Attorney General Andrew Cuomo against First American.
That suit alleges that one of its business units colluded with Washington Mutual Inc. to inflate the appraisal values of homes.
First American denies the charges.
Milberg Weiss partner Melvyn Weiss and former partner William Lerach have been indicted for allegedly paying people to serve as plaintiffs in more than 150 lawsuits.
Lerach pleaded guilty to conspiracy charges in October.
