May inhibits BMPs activity by blocking their interaction with their receptors. Has a negative regulator effect on the cartilage formation/regeneration from immature mesenchymal cells, by preventing or reducing the rate of matrix accumulation (By similarity). Implicated in tumor angiogenesis. May play a role during myoblast and osteoblast differentiation, and maturation.
Pisarska, Kuo, Bentsi-Barnes, Khan, Barlow: "LATS1 phosphorylates forkhead L2 and regulates its transcriptional activity." in: American journal of physiology. Endocrinology and metabolism, Vol. 299, Issue 1, pp. E101-9, (2010) (PubMed).