(photo:  Lerach in action from SF Gate article on HP lawsuit)

We learn from today's New York Times that "securities lawyer William S. Lerach is expected to plead guilty today to a criminal conspiracy charge in connection with a[n alleged] class-action scheme involving his former firm, now known as Milberg Weiss . . . " 

I've heard Mr. Lerach speak on several occasions.  His  passionate defense of the rights of small investors has, it's true, earned him a great fortune.  I have never doubted, however, his integrity or the depth of his commitment to bring corporate wrongdoers to justice.  I'm certain that I am not alone in wishing him well.

I note that his plea agreement protects those who worked with and for him and does not require him to cooperate in the government's efforts to pursue others who have also worked for the benefit of the "little guy."  

As the Times reports:

Mr. Lerach, who has long been under investigation by federal authorities, is expected to enter his plea in United States District Court in Los Angeles. Under the plea deal, he faces one to two years in prison, and will also pay a significant fine . . . 

Mr. Lerach’s plea comes amid a seven-year investigation into whether he and other senior lawyers at Milberg Weiss conspired to pay kickbacks to individuals who agreed to serve as named plaintiffs in class-action lawsuits.

One person with knowledge of the plea deal said that Mr. Lerach would plead guilty to being aware of one such incident. . . . . 

For years, Mr. Lerach and his former firm aggressively filed class-action lawsuits, particularly in the securities area. Being the first to organize and file suits also put them in position to get a sizable share of any legal fees produced by the cases.

Mr. Lerach, who did not return a telephone call to his office, long championed the class-action system as an equalizer for small investors and other plaintiffs seeking redress of corporate wrongdoing. . . . .

Under the plea agreement, Mr. Lerach is not required to cooperate with the government in any further inquiries into the matter . . . The agreement terms, they said, also call for the law firm from which Mr. Lerach recently resigned, Coughlin Stoia Geller Rudman & Robbins, to face no liability or risk. . . . .

For the remainder of the article, click here.