Los Angeles – Pioneering class-action attorney William S. Lerach has agreed to plead guilty to a federal conspiracy charge involving a kickback scheme, prosecutors said Tuesday.
The deal came after a seven-year federal investigation into allegations that Lerach’s former law firm paid people to sign on as plaintiffs in more than 150 lawsuits against major corporations.
Lerach won billions of dollars in judgments in securities cases against major corporations, including a $400 million shareholder lawsuit against Denver-based Qwest.
Prosecutors said the firm netted more than $200 million in fees during a 20-year period.
Lerach agreed to plead guilty to conspiring to obstruct justice and making false statements under oath, according to a statement by the U.S. attorney’s office in Los Angeles.
He will forfeit $7.75 million to the government, pay a $250,000 fine and accept a sentence ranging from one year to two years in federal prison, the prosecutors’ statement said.
