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Bill Lerach is the man Silicon Valley loves to hate. Electronics executives spit out his name as if it were injected with poison, calling the San Diego trial lawyer an egotistical, vile parasite and an opportunistic shyster who makes his living through legalized blackmail.
Yet as much as they hate Lerach, many also grudgingly admit they may owe him a debt of thanks.
"I think in the long run, he might have done some good for the technology industry," said Mike Gulett, president and chief executive of Paradigm Technology Inc., San Jose.
The reason: Proposition 211, a California ballot initiative that was overwhelmingly defeated in the November election. The measure would have overridden federal legislation that limits shareholder suits, making them easier to file and holding board members personally liable in proven cases of fraud against investors.
Had it passed, the initiative might have guaranteed Lerach and his firm a lifetime of new business. Instead, he awakened a sleeping giant.
Technology executives quickly took up the cry against Lerach, donating millions to defeat the measure, organizing their employees against...