PP2A is the most abundant, tightly regulated Ser/Thr phosphatase with complex composition, and plays important roles in diverse aspects of cellular function in all eukaryotic cells (
Virshup 2000;
Janssens and Goris 2001). Several conserved proteins or enzymes regulate the phosphatase activity of PP2A by controlling the stability, activation and inactivation of the catalytic subunit (
Fellner et al. 2003;
Xing et al. 2008;
Kong et al. 2009). Substrate-specific activity of PP2A is controlled by diverse holoenzymes, comprising the scaffold A and catalytic C subunits, and a third variable regulatory B subunit from four major families: B, B′, B″, and B
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(
Virshup 2000;
Janssens and Goris 2001). Formation of PP2A holoenzymes is a highly-regulated process involving activation of the C subunit by PP2A phosphatase activator (PTPA) (
Hombauer et al. 2007) and carboxyl methylation by leucine carboxyl methyltransferase 1 (LCMT-1) (
Lee and Stock 1993;
De Baere et al. 1999). Proper formation of PP2A holoenzymes is critical for cellular function; the malfunction of PP2A is closely linked to diverse human diseases including cancer and Alzheimer’s disease (
Vafai and Stock 2002;
Sontag et al. 2004;
Arroyo and Hahn 2005;
Janssens et al. 2005). Although considerable progress had been made for understanding the atomic architectures of PP2A core enzyme and holoenzymes (
Shi 2009), many aspects of PP2A regulation remain unknown. Particularly, the structural basis underlying the mechanisms of activation and methylation of the C subunit remains elusive.
The C subunit of PP2A possesses a flexible peptide motif at the carboxyl terminus (residues 294–309), here we termed “PP2A tail”, which plays an important role in regulating the oligomeric composition of PP2A complexes (
Mumby 2001). A wealth of data support that carboxyl methylation of the last residue Leu309 of a highly conserved motif in PP2A tail, “T
304PDYFL
309”, enhanced the affinity of the PP2A core enzyme for the regulatory subunits (
Ogris et al. 1997;
Bryant et al. 1999;
Tolstykh et al. 2000;
Wei et al. 2001;
Xing et al. 2006). Changes in PP2A tail and alteration of methylation also affected interaction of the C subunit with the α4 protein, which is essential for cell survival (
Chung et al. 1999;
Kong et al. 2004). Several lines of evidence suggest that PP2A-specific methyltransferase LCMT-1 is essential for cellular functions. Knockdown of LCMT-1 reduces the cellular level of PP2A methylation and induces apoptosis in mammalian cells (
Lee and Pallas 2007;
Longin et al. 2007). Loss of LCMT-1 methyltransferase activity was also linked to neurodegenerative diseases (
Vafai and Stock 2002;
Sontag et al. 2004).
Although the crystal structure of PPM1, the yeast homolog of LCMT-1, has been determined (
Leulliot et al. 2004), the molecular mechanism of LCMT-1 remains poorly understood. Many intriguing observations suggest that LCMT-1-mediated PP2A methylation might involve complex mechanisms. For example, a synthetic peptide with the conserved sequence of PP2A tail is not a substrate of LCMT-1 (
Xie and Clarke 1994). Okadaic acid and microcystin LR, two highly potent phosphatase inhibitor and tumor-inducing toxins, efficiently blocked PP2A methylation (
Floer and Stock 1994;
Li and Damuni 1994). Furthermore, mutations in PP2A active site abolished PP2A methylation in cells (
Yu et al. 2001). Atomic structures of LCMT-1 and its complex with PP2A will be critical for understanding the structural basis of these observations and the mechanism of LCMT-1 function and PP2A methylation.
Here we report high-resolution crystal structures of LCMT-1 bound to S-adenosyl homocysteine (SAH), and in complex with the PP2A catalytic subunit. Interestingly, the structure revealed that LCMT-1 binds directly to the PP2A active site, which provides a mechanism for stimulating activated PP2A to be methylated and efficiently converted to substrate-specific holoenzymes. This suggests that LCMT-1 minimizes the unregulated phosphatase activity of PP2A core enzyme or free C, or formation of inactive holoenzymes. A dominant negative LCMT-1 mutant blocked the uncontrolled phosphatase activity of the core enzyme and attenuated cell cycle without causing cell death. Our studies revealed important mechanisms of LCMT-1 in precise control of PP2A methylation and function, important for regulating cell cycle and survival.