Customer Reviews

Circle of Greed: The Spectacular Rise and Fall of the Lawyer Who Brought Corporate America to Its Knees

5 star:		(9)
4 star:		(2)
3 star:		(5)
2 star:		(1)
1 star:		(0)

 

 

Circle of Greed provides a fascinating account of the rise and fall one of the most famous--or infamous--class action lawyers, Bill Lerach. The book has many fine qualities. First, it is very interesting reading. Lerach has lived a colorful life, and Dillon and Cannon tell a heck of a story.

Second, because Lerach was so prominent in prosecuting class actions, the book provides a concise history of many of the most important cases of fraud in the financial industry over the last several decades, a history that could not be more timely. Dillon and Cannon do a wonderful job of explaining in clear and accessible terms some of the shenanigans in which corporate America has engaged. Those descriptions by themselves justify the price of the book.

Third, Circle of Greed offers a balanced account of class actions and their virtues and vices as a means of achieving justice. Lerach himself appears as a complicated character: a true believer who was so committed to his cause--and to winning--that he was willing to bend and even break the rules, leading to his incarceration.

As a law professor, I teach about and study class actions and complex litigation. Over the years I have learned that people's ideological commitments tend to shape their views of class action litigation rather than the other way around. As a result, Circle of Greed is likely to be a Rorschach test. Those who hate class actions may object that Dillon and Cannon fail to condemn Lerach in clear enough terms. Those who are enamored with class actions may think Dillon and Cannon were too tough on Lerach--or should have chosen a more sympathetic subject, a class action lawyer who acted more ethically. But those who read Circle of Greed with an open mind may learn a little bit about one man's story, as well as a bit about the strengths and weaknesses of class litigation. Dillon and Cannon just provide the facts. The reader has to decide what to do with them.

A tremendous book. A gripping page-turner that every reader will enjoy - even people without a background or specific interest in politics or law. Objectively and thoroughly reported, the authors make complex subjects understandable and present the tale of a larger-than-life character in a tale that someone will certainly turn into a blockbuster movie.

I found the book compelling and timely - given today's social, political and economic climates. Cannon and Dillon have created an amazing and very readable account of the inner workings of class-action suits within the legal system, the formation of questionable political, legal, and corporate liaisons, the lack-luster SEC, investigative work, and cheating. The unfolding revelations within the text are both troubling and fascinating at the same time. The authors clearly reveal there is not much of a delineation between narcissistic, brilliant people and stupidity. Lerach is a conumdrum; and his world of law is clearly full of moral and ethical contradictions. Kuddos to the authors for providing such a wonderfully detailed account of Lerach's world and giving greater insight into the socio-political inadequacies that have become a part of this nation's conscience.
KW

If you enjoy well-written non-fiction about interesting characters and their foibles in the business/legal world, certainly add 'Circle of Greed' to your reading list. Bill Lerach's personality, actions and place in history are certainly worthy of a serious book like this one. The authors Cannon and Dillon maintain a compelling narrative flow while relating an enormous volume of impeccably-researched information- some of it arcane- which is no small feat.

If, however, you are looking for an excellent business-legal world character study/history book/thriller that is simultaneously a textbook on securities law and class action lawsuits, a precise survey of commute times in the Cleveland metropolitan area and completely devoid of any conventional narrative language, this may not be the book for you.

You've heard of the blind leading the blind? How about the amoral prosecuting the amoral?
Dillon and Cannon paint an interesting picture of a complicated anti-hero. It seems perfectly tuned to the climate of anger and blame in today's politics. The crusading lawyer for the little guy turns out to not really be such a crusader and more a self-serving opportunist. Good for those who like shades of gray.

As someone who has closely followed the life and career of Bill Lerach I have been waiting quite some time for someone to write this book, knowing that any recounting of legal work could turn out to be a dry and boring read. I am not disappointed. Dillon and Canon have turned what could have been a tiresome repeat of hearings, trials and settlement conferences into a spellbinding account of a colorful and demi-heroic rougue, someone any reader of the book will never forget, and Wall Street will never forgive. I'd have finished and reviewed the book much sooner, but my wife got her hands on it and wouldn't give it back until she'd reached the last page.

This book is interesting journalism about a character who is bigger than life. Bill Lerach is a brilliant individual whose creative theories and ruthless execution made his an enemy of many companies. The authors decided to tell a story and they told a fascinating one with unbelievable characters. The story really is similar to others in 1990 who started out with an effective business plan and then overdid and destroyed themselves. In many ways Lerach was not different than the Enron folks who he clearly hated. He was so caught up in the need to make money or to be powerful that he felt the normal rules of law did not apply to him. He cheated to get cases. It is unclear from the book whether he thought he could do a better job or that he was manic.

Like so many people like him he either never had a moral compass or he lost it. In any event, he became a disgrace to the bar through his tactics.

My issue with this book is that there is no effort to consider the real issues seriously. I was hoping there would have been an more in depth consideration of Lerach's contribution to general welfare. Also I missed any analysis by the authors of why they felt he acted as he did. i do not believe that the authors made the case that people like Lerach reduce corporate fraud. I think because they destroy respect for the system they give the abusers the ability to say the law is not fair so I am not doing anything wrong by abusing it. Like Lerach explaining why he bought plaintiffs. The lack of such an effort did not reduce the pleasure of reading this book I just felt cheated that I did not get to understand Bill better.

Lawyers will love this book. Non-lawyers will too. That's a recipe for an excellently reported and written narrative about a man who got caught up in a legal system that he'd worked to his advantage. Mr. Dillon and Mr. Cannon cited their extensive research, proving this is not some book they just threw together. If you're interested in fantastic writing, pick this one up.

A college roommate implored me to read Tolstoy's War and Peace.

His persuasive pitch was that the book covered every aspect of the human experience.

I would challenge him by asking, "What about [this]?" He'd reply, "It's in there." I'd try again, "What about [that]?" He'd say, "It's in there."


I've been heartily recommending Circle of Greed by Patrick Dillon and Carl M. Cannon to my law students and fellow lawyers with a similar pitch: Circle of Greed covers the entire range of experience for litigation lawyers, ably showing how cases are prepared, litigated and tried. In so doing, Pulitzer Prize winning writers Cannon and Dillon have created a masterpiece much like Tolstoy. I can't say much more than to declare this is the best book I've read this year, and I doubt it will be topped in 2010.

The book reaches its dramatic apogee in and around chapter 22 cleverly entitled, "The Hunters and the Hunted." In this duality, the book reports on class action securities lawyer William Lerach's simultaneous climb to pinnacle of his civil law niche in pursuit of Enron, while descending to the nadir of the criminal law as the target of the federal investigation that ultimately led to his felony conviction and substantial prison time.

Since Lerach cooperated with the writers, the book provides many fascinating details that an "unauthorized" book would not. While trying to be fair, the book exposes both the laudable and the lamentable. Nevertheless, in the final analysis, Lerach does emerge rather well from the narrative, vindicating his decision to participate in the book.

The ultimate beneficiary, however, is the reader. Circle of Greed garners my top recommendation.

"Circle of Greed" covers three decades of William Lerach's career as he sued the Who's Who of the fortune 500, winning over $45 billion in judgments and settlements with his firm; 90% were settled out of court. Eventually he too became caught up in illegality and was disbarred and imprisoned. Interestingly, before beginning his law career, Lerach authored an article calling class-action securities lawsuits as 'procedural monstrosities.'

Lerach's M.O. was to look for precipitous drops in earnings followed by a sharp drop in the stock price. Then he and his colleagues would search the company's prior public statements for material talking up its financial performance (often based on bogus revenue recognition). If also associated with or following insider trading, Lorach would find plaintiffs and file complaints. Investment banks and accounting firms that participated were also charged. Lerach claimed better results than the SEC, and sometimes he did - eg. $1 billion from Drexel Burnham, compared to $750 million for the SEC, and $750 million from Washington Pacific Power, compared to nothing for the SEC. Recently released from prison, Lerach is now being sought by insurance companies eager to have their policies made suit-proof. Others are proposing the Lerach be given a role in reclaiming excessive Wall Street executive pay and bonuses, and he has responded with an informal proposal of how this could be done. He has also lost his law license and been disbarred in California.

The sometimes hard part of Lerach's business was getting clients to represent. This was solved when Seymour Lazar proposed buying stocks and then serving as a plaintiff, for a kickback of about 10% of the firm's legal fees. Kickbacks are illegal, but Lerach thought he'd solved that by using intermediary attorneys. The feds didn't catch on until the late 1990s, and Lerach ended up with a two-year sentence and forfeiting $8 million out of his $700 million fortune.

The problem with "Circle of Greed" is that it way to long, and sometimes jumps around - breaking one's chain of interest and focus. The authors' dislike for Lerach is also more than a bit too obvious.