Are Brokerages the Next Target for Milberg Weiss?

At least two reports in the past two days suggest that class-action powerhouse Milberg, Weiss, Bershad & Schulman may file a lawsuit against major Wall Street brokerages on behalf of hedge funds. Neither story names a particular firm or fund, but both items peg naked short-selling — in which at least some of the underlying shares are not borrowed, as securities rules require — as a major issue in the potential litigation.