Class-action lawyer to fight federal charges

Melvyn I. Weiss, the co-founder of a law firm that was among the nation’s most successful in class-action litigation, vowed Friday to clear his name and beat federal charges that he participated in a kickback scheme that allegedly netted millions of dollars in illicit legal fees.

Weiss said in a statement issued before a bail hearing in Los Angeles that he looked forward to “clearing my name and returning to a practice to which I have devoted my professional life, one that has given access to the courts to millions of Americans who would not otherwise have been able to achieve justice.”

Weiss is charged with conspiracy, racketeering, obstruction of justice and making false statements. If convicted of all four counts, the 72-year-old could be sentenced to 40 years in prison.

In an agreement worked out ahead of the hearing before U.S. District Judge Charles F. Eick, Weiss surrendered his passport and was freed on a $500,000 unsecured appearance bond and a cash deposit of $1 million.

Under the terms of the bail agreement, Weiss is free to travel in California and Florida, where he has a residence, and to Washington. He has 72 hours to report travel to any other place in the continental U.S.

Federal prosecutors claim that Weiss’ law firm, Milberg Weiss, paid illegal kickbacks to people who agreed to act as plaintiffs in 225 shareholder cases in order to be the first to file lawsuits against corporations that allegedly defrauded investors.

Being first in the courthouse filings gave the law firm a leadership role in class actions, according to prosecutors, and entitled the firm to the largest share of legal fees.

Weiss’ attorney, Benjamin Brafman, said Weiss would plead not guilty in his next court appearance on Monday and vowed to pursue “a vigorous defense.”

William S. Lerach, a Weiss protege, pleaded guilty last month to one count of conspiracy in the case. He is one of six people connected with the case to make a deal.

ron.white@latimes.com