New York-based Milberg Weiss issued a statement saying it was "saddened" by the indictment against Mr. Lazar.

"Although the indictment does not name Milberg Weiss, it unfairly implicates the firm in the wrongdoing of Lazar. We are outraged that these allegations have been made against the firm and reject them as baseless," the statement said.

The indictment refers only to a New York law firm. It alleges that to conceal the kickback scheme from the courts presiding over such lawsuits and other parties to such legal actions, Mr. Lazar made false and misleading statements in depositions and documents he signed under penalty of perjury.

The indictment also includes six substantive money laundering counts, one count of obstructing the grand jury investigation, and a criminal forfeiture count.

According to the grand jury, Palm Springs attorney Paul Seltzer, 64, served as one of the intermediary lawyers who laundered illegal kickback payments for the benefit of Mr. Lazar.

Attorney Thomas Bienert in San Clemente, Calif., who represents Mr. Lazar, told the New York Times the government was trying to pressure his client to take a plea deal and testify against Milberg Weiss. He described Mr. Lazar as a "crusader for consumer advocacy."