Federal prosecutors have been investigating one of the nation's prolific class-action law firms, Milberg Weiss Bershad & Schulman, for alleged fraud, conspiracy and kickbacks involving a slew of securities lawsuits, and may seek criminal charges against the firm and its senior partners, The Wall Street Journal reports.

The three-year probe centers on allegations that the New York law firm routinely made under-the-table payments to plaintiffs who appeared on securities class-action lawsuits brought by the firm, the Journal said, citing court documents and attorneys close to the case.

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