Lead defense counsel Jerold Solovy did not return a telephone call. Neither did Lerach or Weiss. While observers say most of Milberg Weiss' litigation costs were probably covered by insurance, the settlement probably was not. Insurance companies, say civil litigators not involved in the Lexecon case, typically and explicitly exclude coverage of intentional torts. However, Michele Odorizzi, a partner at Mayer, Brown, said no National Union lawyers attended any of the settlement negotiations between Lexecon and Milberg Weiss.
Insurance companies tend to be present when their money is being discussed.
The evidence of that was overwhelming. Lexecon had previously submitted reports declaring Lincoln financially fit. Milberg Weiss lawyers then used the Lincoln suit to discredit the company's expert testimony in other cases. But aside from the obvious financial reasons to settle, the Milberg Weiss partners also had public relations on their minds. The last thing the firm needed was to have its financial affairs dissected in such a public fashion that a punitive damage trial would have required.