On
Monday, US District Judge William Alsup approved
a class settlement in the Network Associates securities
litigation of $30 million and attorneys' fees of
just 7 percent, a figure far below the benchmark
and one which was hailed as proof that a novel
process of requiring firms to bid for class counsel
status means more money for class members.
Judge
Alsup had balked at rubber-stamping a Philadelphia
pension fund's selection of class counsel and when
the fund backed out of the case, he personally interviewed
replacements.
Eventually,
he chose lawyer Robert Vatuone as the lead plaintiff.
Through the bidding process, which remains rare but
is gaining wider acceptance, Vatuone chose Lieff
Cabraser Heimann & Bernstein to represent the
class.
In
the end, Alsup approved the 7 percent fee agreement,
which will be calculated after Lieff Cabraser deducts
expenses of approximately $360,000. The firm will
earn more than $2 million for its work on the case.
The
fee is far below the benchmark in such cases, and
Alsup's intention to find a lead plaintiff to adequately
navigate the litigation and drive a hard bargain
on fees seems to have worked. Even class action critic
Lawrence Schonbrun submitted a declaration approving
the agreement. |
