William Lerach, American securities, class action attorney

William "Bill" Shannon Lerach, born on March 14, 1946, in the Ohio River Valley within the Midwestern United States, carved out a formidable yet controversial career as a lawyer specializing in private securities class-action lawsuits. Before his eventual disbarment, Lerach was known for his aggressive pursuit of corporations on behalf of defrauded investors, making headlines with record-breaking recoveries.

A Maverick in Securities Class Action Law

For decades, William Lerach was synonymous with the high-stakes world of securities class actions. These complex lawsuits allow groups of investors to collectively sue companies for financial misconduct, typically involving misrepresentation or fraud that impacts stock value. Lerach became a titan in this field, tirelessly advocating for those who felt wronged by corporate malfeasance. His most monumental achievement came as the lead plaintiff's attorney in the sprawling case against Enron, the energy trading giant whose collapse exposed widespread corporate fraud. The astonishing $7.12 billion he secured in that single cluster of lawsuits stands to this day as the largest sum ever recovered in a group of securities class-action lawsuits in U.S. history. Over the span of his career, it is estimated that Lerach's efforts resulted in the recovery of an astounding upward of $45 billion for investors who had been defrauded. He often attributed about 85% of his cases to insider trading, a practice he famously described as leaving "footprints in the snow," indicating tell-tale signs of illicit activity.

The Steep Decline: Obstruction of Justice and Disbarment

Despite his undeniable success in recovering vast sums for investors, Lerach's career was ultimately overshadowed by serious legal troubles. In 2007, he pleaded guilty to charges of obstruction of justice, a significant legal admission that would send shockwaves through the legal community. This plea led to a sentence of two years imprisonment, marking a dramatic downfall for one of the nation's most prominent lawyers. As a direct consequence of his criminal conviction, Bill Lerach was disbarred from practicing law in California in 2009, effectively ending his legal career. Intriguingly, his guilty plea was part of a larger settlement which stipulated that Lerach would not cooperate as a witness in further investigations, and in return, his law firm would be protected from any additional prosecution, highlighting the complex negotiations surrounding his legal predicament.

Frequently Asked Questions About William "Bill" Lerach

Who is William "Bill" Lerach?

William "Bill" Shannon Lerach was a prominent American lawyer specializing in private securities class-action lawsuits, known for securing record-setting recoveries for defrauded investors before his disbarment.

What was his area of expertise?

Lerach specialized in private securities class-action lawsuits, representing groups of investors against corporations accused of financial fraud or misconduct, particularly those involving insider trading.

What was the significance of the Enron case in his career?

The Enron case was his most significant achievement, where he recovered an unprecedented $7.12 billion as the lead plaintiff's attorney, making it the largest sum ever recovered in a group of securities class-action lawsuits in U.S. history.

Why was William Lerach disbarred?

Bill Lerach was disbarred in California in 2009 following his 2007 guilty plea to obstruction of justice, for which he also served two years in prison.

How much money did Lerach recover for investors throughout his career?

It is estimated that over the course of his career, William Lerach recovered upward of $45 billion on behalf of defrauded investors through his successful class-action lawsuits.