Melvyn Weiss, the most senior partner at a law firm that championed shareholder class actions and was reviled by corporate America as a result, has agreed to plead guilty to federal charges for his role in paying millions of dollars in kickbacks to people who agreed to serve as plaintiffs in securities class actions.

Weiss will plead guilty to federal racketeering, one of four charges brought by federal prosecutors in Los Angeles. In the wake of the February 12 sentencing of William Lerach, Weiss' former law partner, Weiss and his lawyer met with prosecutors last week to discuss a deal.

Lerach, 62, received a two-year prison sentence—the maximum term under the plea agreement he struck in October. Lerach is scheduled to surrender to begin serving his prison term tomorrow. Lerach and Weiss split their law practice in 2004, partly owing to tensions from the lengthy criminal investigation, which began in 2001.

Together, Weiss and Lerach transformed the business of securities litigation, winning tens of billions of dollars from corporations and prompting Congress to change the law in the late 1990s. But they were accused of making illegal payments to plaintiffs and of trying to hide them.

Weiss, 72, has struck a deal to serve 18 to 33 months, and the government is expecting Judge Walter to impose the maximum sentence. Weiss has also agreed to forfeit $9.8 million and pay a $250,000 fine, and to admit his role in the scheme. Weiss made staggering profits from the kickback scheme. According to the indictment, his share of the law firms profits from 1983 to 2005 amounted to more than $209 million.

Thomas P. O'Brien, the United States attorney in Los Angeles, commented on Weiss's guilty plea in blunt terms: "The scheme was based in greed and it affected the integrity of the courts and the interests of an untold number of absent class members" in securities fraud class actions.

An assistant for Benjamin Brafman, Weiss's lawyer, issued a statement referring to Weiss' guilty plea "to his limited participation" in the criminal conspiracy and expressing hope that Judge Walter will "recognize Mel Weiss as one of the true legal giants of his generation."

The indictment against Milberg Weiss remains pending. Under Weiss' deal, like the one cut by Lerach, he will not cooperate against the remaining defendants.

This morning, the law firm changed its name to Milberg L.L.P. In July 2007, prosecutors and the firm tried to resolve the case against the law firm. Members of the firm's management committee have been adamant that they will not allow the firm to plead guilty, and will seek instead a deferred prosecution agreement.

Sanford Dumain, a member of the Milberg L.L.P. executive committee, said, "Having previously believed former leaders' assurances of their innocence, the firm is now seeking to find a fair and appropriate resolution of remaining issues so that we can continue to work on behalf of injured investors and consumers."

The firm added in a statement: "Milberg L.L.P. apologizes to all judges, lawyers, clients, and class members, who deserve full and complete adherence to all legal and ethical norms."

The firm has 70 lawyers. Milberg Weiss ranked fourth in settlements of class actions reported in 2007, according to a survey released March 6 by Institutional Shareholder Services, with 22 settlements totaling $1.6 billion. If the firm pleaded guilty to a federal criminal offense, it is highly unlikely that a judge would approve the law firm to serve as lead counsel for the plaintiff in a class action.

Calls to William Taylor of Zuckerman Spaeder, and Marc Harris and Bryan Daly of Mayer Brown, defense counsel for Milberg Weiss, were not immediately returned.

Weiss  "is a man of indominable spirit," says Ralph Ferrara of Dewey &   LeBoeuf, a lawyer has often been his adversary as counsel for the  defense in shareholder class actions. " He will carry on in one way 
or another as an advocate for shareholders and investors. This guy will never fade away."