Lori Loughlin, Husband Expected in Court Amid Spat Over Lawyers

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Lori Loughlin and Mossimo Giannulli

Prosecutors say the situation poses a potential conflict of interest.

Actress Lori Loughlin and her fashion designer husband, Mossimo Giannulli, appeared in court to settle a dispute over their choice of lawyers in a sweeping college admissions bribery case.

The couple appeared in Boston's federal court Tuesday to determine whether they can continue using a law firm that recently represented the University of Southern California, which is an alleged victim in the couple's case. The judge ruled in favor of the couple. They may retain their lawyers. 

Prosecutors say it poses a potential conflict of interest.

"The concern here is that this law firm cannot zealously represent Loughlin and her husband because they might be pointing fingers at each other," former federal prosecutor Laurie Levenson told CBS News.

She continued, "The benefit for Lori Loughlin and her husband is that there's strength in having a joint defense. That they'll stand in unity and say this is an unfair prosecution. The risk in them sticking together in a joint defense is that they both could go down."

Loughlin and Giannulli say the firm's work for USC was unrelated to the admissions case and was handled by different lawyers. 

The couple is accused of paying $500,000 to have their two daughters labeled as recruits to the USC crew team, even though neither participated in the sport.

They have pleaded not guilty.