Lerach admits crossing the line

Class-action king William Lerach always fought aggressively for clients, including shareholders hurt by the Enron debacle. He won billions of dollars in settlements from banks and investment firms accused of contributing to the energy company’s fraud.

Yesterday, however, Lerach admitted going too far on behalf of some clients. He pleaded guilty to a conspiracy charge involving his former firm, now known as Milberg Weiss, which prosecutors say paid kickbacks to clients dating back to the 1970s.

Lerach agreed to accept a prison term of from one to two years, forfeit $7.75 million to the government and pay a fine of $250,000, according to The New York Times. He said he made secret payments to one named plaintiff and said other plaintiffs received payments from other attorneys at the firm.

Lerach apologized for his actions. “I regrettably crossed a line and pushed too far,” he said in a statement.

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