Milberg Weiss is one of the best-known law firms that bring class actions on behalf of shareholders and customers against large companies. The firm boasts that it has recovered more than $45 billion (£22.3 billion) on behalf of clients in cases connected with financial fraud.

David Bershad, a 67-year-old former managing partner at the law firm, yesterday agreed to plead guilty to conspiracy to obstruct justice and make false statements under oath. Those charges could attract a sentence of up to five years in prison. Mr Bershad has agreed to return $7.75 million, pay a $250,000 fine and cooperate with the US Attorney’s office in Los Angeles.

For the past seven years, federal prosecutors have been investigating whether Milberg Weiss, the firm, Mr Bershad and his former partner Steven Schulman took part in a scheme to pay millions of dollars in illegal kickbacks to shareholders so that they would serve as lead plaintiffs in class action fraud cases.

The prosecutors were trying to ascertain whether, once a case was settled, some of the legal fees due to the firm were paid to the lead plaintiffs. Such payments are illegal because lead plaintiffs have to represent other members of the class action and have to declare that their interests are in line with the others’.

Mr Bershad was indicted last year by a Los Angeles grand jury along with Mr Schulman for making such payments in cases where the firm was paid $216 million. Milberg Weiss and Mr Schulman, who has since retired, pleaded not guilty. The trial is to due to start in January.

In a statement, Milberg Weiss & Bershad said: “We understand David Bershad will plead guilty today to conspiracy to obstruct justice. Mr Bershad had been on a leave of absence since May 2006 and his relationship with Milberg Weiss LLP has been terminated. We remain confident that his actions will have no effect on the firm’s commitment to its clients and its ongoing work to protect public shareholders and consumers.”

Federal investigators finally got lucky in the long-running inquiry in May last year. Los Angeles prosecutors secured a guilty plea from Howard Vogel, who admitted that he and his family had received $2.5 million in illegal payments from the law firm in return for becoming lead plaintiffs in a number of class actions. Mr Vogel named four partners at Milberg Weiss and also agreed to cooperate with the investigation.

Mr Bershad had responsibility for overseeing the finances and accounting processes of Milberg Weiss, according to court papers.

"Of course, this is the worst possible development," a law professor at New York University, Stephen Gillers, said. "It bodes ill for Partners A & B," the professor said, using the pseudonyms prosecutors have adopted to refer to Messrs. Weiss and Lerach in court proceedings. "Each of them is clearly in the prosecutors' sights," Mr. Gillers said. With Bershad's testimony, prosecutors "may now have the ability to pull the trigger" and obtain an indictment of the two men, Mr. Gillers said.

"It seems pretty damning to me," another professor who has been following the case, Larry Ribstein of the University of Illinois, said. "They are facing a trial or pretty hard time, if all this pans out."

Messrs. Weiss and Lerach have not been charged with any crime. However, in recent weeks, the pair has been in plea discussions with federal prosecutors, a lawyer involved in the case said, speaking on condition of anonymity.

Mr. Weiss's attorney, Benjamin Brafman, declined to comment on the development. Mr. Lerach's lawyer, John Keker, did not respond to a message seeking comment for this article.

Bershad could receive up to five years in prison on the conspiracy count. Prosecutors and Bershad's lawyers agreed that sentencing guidelines call for 18 months to two years in his case, though Judge Walter is not obligated to follow that recommendation. Bershad also agreed to forfeit $7.75 million of his receipts from the various lawsuits and to pay a $250,000 fine.

At yesterday's hearing, Bershad and one of his lawyers, Cristina Arguedas, stood at a lectern as a prosecutor, Richard Robinson, outlined the facts the government would seek to prove if Bershad went to trial. For 15 minutes, the prosecutor described the scheme by which Milberg Weiss used secretly paid plaintiffs to win the race to be first to file securities lawsuits.

"Generally, these individuals were promised that they would be paid approximately 10% of the net attorneys' fees that Milberg Weiss obtained," Mr. Robinson said. This gave Milberg Weiss an advantage because plaintiffs' firms that filed first were likely to be named as lead counsel and to enjoy a larger share of attorneys fees when cases were settled, he said. In 1995, Congress changed the laws related to class actions, and first-to-file status became less critical.

In one of the case's most eye-catching allegations, Mr. Robinson said Bershad kept in his office a stash of cash contributed by Milberg Weiss partners. The prosecutor said this became a "secret payment fund" used to make off-the-books distributions to plaintiffs, who were expected to take less than the customary 10% if they were paid in cash.

Mr. Robinson said Partner A, Mr. Weiss, made at least one payment from the fund, and Partner B, Mr. Lerach, sought reimbursement for a cash payment to a plaintiff. The prosecutor said Partner A also used a "phony option," which court papers indicate related to an artwork, to pay $175,000 owed to one plaintiff involved in the scheme.

During Zheng's tenure, six types of medicine were approved that turned out to be fake and some pharmaceutical companies used false documents to apply for approvals.

In comments on Zheng's case, a spokeswoman for the State Food and Drug Administration, Yan Jiangying, said Tuesday that corrupt officials have shamed the country's food and drug supervision system, Xinhua reported.

"We should seriously reflect and learn from these cases," Yan said. "We should fully protect public food and drug safety. The new drug registration regulation, which will come out soon, will ensure the transparency of the drug approval procedure."

In late June, China shut down 180 food producers that were found to be using improper industrial chemicals and additives.

Also last month, the U.S. Food and Drug Administration said it is imposing stricter controls on farm-raised Chinese seafood because of long-term health concerns about contamination with drugs and unsafe food additives, but that there is no immediate danger to consumers.

The action, which was effective immediately, covers farm-raised shrimp, eel, catfish, and two other kinds of fish, basa and dace, from China, the world's largest producer of farmed fish and the third-largest exporter of seafood to the United States.

The drug varenicline is already on the market under the brand name Chantix to help smokers kick the habit but new preliminary research now suggests it could also be useful in helping heavy drinkers quit.

The research which was carried out on rats provided the rodents with intermittent access to 40 proof alcohol for four months and by varying the access to the liquor supply the rats were made to crave it.

The researchers say every time the rodents had access to booze, they upped their intake and drank all day and withdrawing the alcohol made them want to drink even more.

After months of this behaviour and a total of 37 binge-drinking sessions, all the rats cut their drinking in half when given varenicline.

When taken off the drug, the rats did not immediately imbibe more, a rebound effect that has affected other treatments.

Varenicline has been available as a smoking cessation aid for nearly a year in the U.S. and the European Union, and as well as being safe it does not suppress the appetite and is not metabolized in the liver.

Bartlett says this is a major plus because long term drinkers often have liver damage.

According to the researchers the drug targets a pleasure center in the brain and has the potential to be considered as a treatment for addictions such as gambling and painkillers.

Varenicline works by latching onto the same receptors in the brain that nicotine binds to when inhaled in cigarette smoke, an action that leads to the release of dopamine in the brain's pleasure centers; the drug blocks any inhaled nicotine from reinforcing that effect.

The new study suggests alcohol also acts on the same locations in the brain and varenicline, might be equally as effective for curbing drinking.

Selena Bartlett, a University of California neuroscientist who led the study says the drug has already proven itself safe for people trying to stop smoking and is now a potential drug to fight alcohol dependence.

Experts say smoking and drinking often go together and a single drug able to tackle both addictions is not surprising.

The researchers at the University of California along with the National Institute on Alcohol Abuse and Alcoholism, plan to conduct clinical trials in humans of the drug's effectiveness in curbing alcohol cravings and dependence.

The drug is already approved by Food and Drug Administration and this should speed the process up.

But skeptics warn that varenicline does not work for all smokers and it's highly unlikely it will work for all drinkers and some experts insist there is a common biological basis for addictions to both alcohol and tobacco.

Although drug company Pfizer provided the drug for the study it was not involved in the research and is apparently undecided whether to seek broader FDA approval for the drug.

Pozen Inc. (POZN.O: Quote, Profile, Research), which develops drugs to treat acute and chronic pain, said on Tuesday it has settled a class-action lawsuit filed against the company and its chief executive officer, Dr. John Plachetka.

Pozen said all claims against the company and Plachetka will be dropped without admission of wrongdoing by any party.

The settlement agreement, which remains subject to court approval, will be funded with proceeds from the company's directors and officers' liability insurance.

About POZEN

POZEN is a pharmaceutical company committed to developing therapeutic advancements for diseases with unmet medical needs where it can improve efficacy, safety, and/or patient convenience. POZEN's efforts are focused primarily on the development of pharmaceutical products for the treatment of acute and chronic pain and other pain-related conditions. POZEN has development and commercialization alliances with GlaxoSmithKline for the proposed product candidate Trexima combining sumatriptan, formulated with RT Technology, and naproxen sodium in a single tablet for the acute treatment of migraine, which is currently under review by the United States Food and Drug Administration, and with AstraZeneca for proprietary fixed dose combinations of naproxen with the proton pump inhibitor esomeprazole magnesium in a single tablet for conditions such as osteoarthritis and rheumatoid arthritis in patients who are at risk for developing NSAID-associated gastric ulcers. The company's common stock is traded on The Nasdaq Stock Market under the symbol "POZN". For detailed company information, including copies of this and other press releases, see POZEN's website: www.pozen.com.

Pulley Watson King & Lischer (PWKL), a long-established firm in Durham, has hired Rella:Cowan, a marketing and advertising agency, to rebrand the law firm which specializes in medical malpractice and personal injury cases. Rella:Cowan will work with PWKL to research and develop the firm’s brand positioning and create a new corporate identity and website, as well as other marketing tactics.

“We talked to a number of marketing and branding agencies, and Rella:Cowan was the one who truly understood what we need to do for this firm,” said Stephanie Jester, Firm Administrator for PWKL. “We were impressed with their proven experience and their guidance in helping this firm become even more competitive in the complex realm of medical malpractice and personal injury law.”

The agency is conducting a competitive analysis and executive interviews to develop the firm’s new brand positioning. The research phase will be followed by the development of a full corporate identity package with a new logo and website that will include public service information about specific medical conditions and preventing them.

About Pulley Watson King & Lischer
Pulley Watson King & Lischer (PWKL) is one of North Carolina's leading plaintiff's personal injury firms, with an excellent reputation for handling catastrophic cases while providing outstanding client care. PWKL’s practice includes wrongful death, medical negligence, personal injury, environmental claims, estate planning, corporate law, and commercial litigation. The firm’s attorneys are members of a variety of professional associations and are active in many community service efforts. Richard Watson and Guy Crabtree, both partners with the firm, were recently named to 2007 The Best Lawyers in America list. Malvern King, Managing Partner, was inducted into the General Practice Hall of Fame by the North Carolina Bar Association in June.

About Rella:Cowan

Rella:Cowan is a full-service strategic marketing and advertising agency. With award-winning work and diverse experience, Rella:Cowan helps clients effectively communicate their brands. The agency’s current clients include companies in financial services, technology, retail and professional services. For more information, visit http://rellacowan.com.

The latest move in the separation of powers fight between the legislative and executive branches came as members of Congress began returning from their Fourth of July recess. An atmosphere of high tension accompanied the resumption of work as a fight also loomed there between majority Democrats and some key Republicans and Bush over his Iraq war policy.

In his letter regarding subpoenas the Judiciary panels issued, Fielding said, "The president feels compelled to assert executive privilege with respect to the testimony sought from Sara M. Taylor and Harriet E. Miers."

"You may be assured that the president's assertion here comports with prior practices in similar contexts, and that it has been appropriately documented," the letter said.

Fielding was responding to a 10 a.m. EDT deadline set by the Democratic chairmen, Sen. Patrick Leahy of Vermont and Rep. John Conyers of Michigan, for the White House to explain it's privilege claim, prove that the president personally invoked it and provide logs of which documents were being withheld.

As expected, Fielding refused to comply. He said he was acting at Bush's direction, and he complained that the committees had decided to enforce the subpoenas whether or not the White House complied.

"The committees have already prejudged the question, regardless of the production of any privilege log," Fielding wrote. "In such circumstances, we will not be undertaking such a project, even as a further accommodation."

Conyers' response left little doubt where the matter was headed.

"Contrary what the White House may believe, it is the Congress and the courts that will decide whether an invocation of Executive Privilege is valid, not the White House unilaterally," the House chairman said in a statement.

The privilege claim on testimony by former aides won't necessarily prevent them from testifying this week, as scheduled.

Leahy said that Taylor, Bush's former political director, may testify as scheduled before the Senate panel on Wednesday. The House Judiciary Committee scheduled Miers' testimony for Thursday, but it was unclear whether she would appear, according to congressional aides speaking on condition of anonymity because negotiations were under way.

The exchange Monday was the latest step in a slow-motion legal waltz between the White House and lawmakers toward eventual contempt-of-Congress citations. If neither side yielded in that circumstance, it would go to a federal court.

The probe into the U.S. attorney firings was only one of several Democratic-led investigations of the White House and its use of executive power spanning the war in Iraq, Bush's secretive wiretapping program and his commutation last week of I. Lewis "Scooter" Libby's prison sentence.

Meanwhile, several Democratic-run investigations are playing out this week as they head toward contempt of Congress citations and, if neither side yields, federal court.

On Iraq, Democrats expect to resume legislative challenges to Bush's policy on the war as the Senate this week takes up a major defense spending bill. The administration has been concerned about an escalation of Iraqi war fervor. So much so that Defense Secretary Robert Gates canceled a four-nation South American tour this week to work with the White House on Iraq policy. unclear whether she will appear.

Sen. Susan Collins of Maine, ranking Republican on the Homeland Security Committee, said Monday there had been "a steady erosion for the president's policy" in Congress because of the "tremendous loss of life among our troops" in June and "the failure of the Iraqi government to pursue the political reforms that are necessary to quell the sectarian violence."

Collins is among the Senate Republicans seeking to see U.S. troops departing Iraq by early 2008. Bush's strategy for a short-term troop increase to stabilize Baghdad and certain parts of Iraq has not been successful, she said.

"The president argued that we needed to undertake the surge in order to give the Iraq government the time, the space to pursue the political reforms," Collins said on CNN. "That hasn't happened. Instead it has been our troops who are making the sacrifice, who are bearing the burden, and that's why you see a real change in support for the Iraq strategy."

In Baghdad Monday, Iraqi Foreign Minister Hoshyar Zebari warned that a quick American troop withdrawal could lead to civil war and the collapse of the Iraqi state.