Michael Milken's guilty plea to six felony counts makes it impossible for him to claim in civil cases that he was not guilty of market fraud. So many shareholders and investors have filed suits against him that some attorneys are suggesting that Milken should file for bankruptcy. Milken's attorneys, however, say that the $400 million that he is required to provide for civil restitution will more than cover any legitimate claims. The case has been a long time coming. Whatever the case, settling so many high-stakes cases could be a long and tricky process.
Michael Milken's guilty plea to six felony counts makes it impossible for him to claim in civil cases that he was not guilty of market fraud. So many shareholders and investors have filed suits against him that some attorneys are suggesting that Milken should file for bankruptcy. Milken's attorneys, however, say that the $400 million that he is required to provide for civil restitution will more than cover any legitimate claims. The attorneys negotiated a plea agreement designed so that little of what Milken admitted to can be used against him in civil suits. Whatever the case, settling so many high-stakes cases could be a long and tricky process.